9911796707
|
Home
Issues:
Levy of penalty under s.273(2)(aa) of the IT Act, 1961 for asst. yr. 1982-83 based on inaccurate estimate of advance tax. Analysis: The appellant derived income from share in partnership firms, salary, dividend, and interest. He filed revised estimates of total income and advance tax payments based on estimates from partnership firms. The penalty under s. 273(2)(aa) was levied by the ITO and confirmed by the CIT(A) due to discrepancies in income estimates. The appellant argued that the substantial profits earned by partnership firms after the estimate submission could not have been anticipated, citing judgments placing the burden of proof on the Revenue to establish mens rea for penalty imposition. The Departmental Representative contended that the penalty was justified, emphasizing the appellant's role as the main partner and the accuracy expectation in estimating profits from partnership firms. Relying on specific cases, the representative supported the confirmation of the penalty by the CIT(A). The Tribunal analyzed the provisions of s. 273(2)(aa), highlighting the requirement for the estimate to be knowingly inaccurate at the time of submission. The Tribunal compared the share income estimates provided by the appellant with the actual income from partnership firms, concluding that the penalty was unwarranted as the estimates were prepared in good faith based on available information. Referring to relevant case law, the Tribunal emphasized the need for the Revenue to prove the estimate's falsity or inaccuracy at the time of submission, which was not demonstrated in this case. Consequently, the penalty was canceled, considering the honest and bona fide nature of the estimate preparation. In conclusion, the Tribunal allowed the appeal, canceling the penalty imposed under s. 273(2)(aa) for the assessment year in question.
|
