TMI Blog1985 (12) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... of advance-tax amounting to rs 1,53,70,282. However, the assessee did not make any payment in the month of June, 1978. The accounting period of the assessee ended on31st Aug., 1978. The assessee filed estimate of its total income and the tax payable thereon. On12th Sept., 1978. Income was estimated at Rs 40,00,000 and the tax payable at Rs 22,00,000. Half of the estimated tax that came to Rs. 11,00,000 was paid by the assessee on14th Sept., 1978. Thereafter, on13th Dec., 1978the assessee filed another estimate. In this estimate, income estimated Rs. 84,00,000 and tax payable at Rs. 47,41 lacs. Since the assessee had paid Rs. 11,00,000. Earlier, the balance of Rs. 36,41,000 was paid on15th Sept., 1978. The return of income was filed on27th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order made by the IAC (Asst.) under s. 216. Hence, the appeal by the Revenue before us. 4. The revenue contended before us that the order of the ld. CIT(A) is incomplete as it does not give proper reasons for cancelling the order of the IAC (Asst) made under s. 216 of the Act. Relying upon the judgment of the Allahabad High Court in the case of CIT vs. Elgin Mills Co. Ltd. (1980) 123 ITR 712 (All) and in the case of Travancore Tea Estates Co. Ltd. (1985) 46 CTR (Ker) 129 : (1985)153 ITR 444 (Ker),it was contended that the order of the CIT(A) be set aside and in its place that of the IAC (Asst). Restored. 5. The ld. counsel for the assessee on the other hand submitted that the assessee filed an estimate bona fide on the facts availa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce tax payable by him and thereby reduced the amount payable by him in either of the first two instalments. Only when such a finding of fact is given that the ITO has been vested with the powers to use his discretion under this section. Since there is no definition of the word 'estimate' and, 'under estimate', the dictionary meaning of these words can be a guiding factor to determine their meaning. Estimate is thus the action of valuing or appraising, and approximate conclusion based upon probability. The word 'under estimate', signifies an estimate which is not true. Thus, both for making an estimate or an under estimate on an application of mind is required on the part of the assessee. Therefore, the question whether there was justificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee, therefore, cannot be said to be absolutely of the mark. 8. When the IAC(Asst.) made the order under s. 216, he has taken the assessed income at Rs. 1,10,25,075. Thus, in fact is not the income to be taken into consideration as the figure of finally assessed income at Rs. 97,99,006 on which tax payable was Rs. 56,58,926 as shown at page 1 of the paper book which has not been controverted by the Revenue. This shows that appreciation of facts by the IAC (A) was not after the finally determined income but only taking into consideration the income that the determined in his order on21st May, 1980. 9. In our considered opinion, the ld. CIT(A), though he was brief in his order, has given a finding of fact that, "there was no under esti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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