Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 72 - HC - Income TaxDeletion of penalty imposed u/s 273(2)(a) - whether the ITAT ought to have recorded independent finding while confirming the order of the Commissioner of Income Tax (Appeals) - held that:- Income Tax Appellate Tribunal was legally right in not quashing the penalty proceeding under Section 273(2) of the Act on the ground that no such proceedings were proposed in the draft assessment order nor any direction under Section 144B of the Act was given by the Inspecting Assistant Commissioner of the Income Tax in his order to the Assessing Authority. Wrong estimation of advance tax - held that:- The provision of Section 273(2)(a) is attracted where an assessee furnishes estimate of advance tax payable by him which he knew or has reason to believe to be untrue. A thing which is in the knowledge or belief of an assessee, has to be proved by the assessee himself and not by the Revenue authorities. Thus, no benefit can be derived by the appellant from the aforesaid decision of the Hon'ble Supreme Court in the case of Sarabhai Holdings Pvt. Ltd. (2008 (10) TMI 12 - SUPREME COURT). There cannot be any quarrel with the principles laid down by the Bombay High Court in the case of Hind Products Pvt. Ltd. (1980) 121 ITR 903) and of the Calcutta High Court in the case of Birla Cotton Spinning & Weaving Mills Ltd. (1985 (1) TMI 15 - CALCUTTA HIGH COURT) wherein it has been held that the very word estimate implies presumptions and not accuracy and merely because at the end of the year an assessee is shown to have earned an income which is more than that shown in the estimate. The finding of the Income Tax Appellate Tribunal that the assessee has not been able to specify the reasons as to why it considered the depreciation in investment allowance on the machinery which was yet to be installed for computing the income liable to pay advance tax, is neither perverse nor vitiated in law. Tribunal recorded its agreement with the findings of the Commissioner of Income Tax (Appeals) and consequently upheld the order of the Commissioner of Income Tax (Appeals) on this point. - It cannot be said that the Tribunal had not applied its mind to the matter of merits and as the assessee had failed to refute the specific finding of the Commissioner of Income Tax (Appeals), the Tribunal had agreed with its finding. Tribunal was not required to give its independent finding when it had concurred with the findings of the Commissioner of Income Tax (Appeals).
|