TMI Blog1977 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... he IT Act, 1961. 2. The assessee is a registered firm. For the previous year relevant to the assessment year under consideration, the return under s. 139(1) of the Act was to be filed by 30th June, 1974, but it was filed on 28th Nov., 1974. Thus, there was a delay of 3 months in filing the return. The ITO at the time of completing the assessment initiated penalty proceedings under s. 271(1)(a) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C may be sustained. 6. We have heard the parties and perused the material available on the record. Before the learned AAC, the assessee gave the following explanation: "The accounts could not be completed even by 15th Sept., 1974 as due to disruption of rail trafic due to floods the Ghaghar the assessee could not contract the Arhaties and get details of sales etc. The return was filed in last ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) of the Act. 7. The assessment for this year was completed on total income of Rs. 92,210. At the time of completing the assessment of ITO issued notice on 14th March, 1975, wherein, the default was to file the estimate of advance-tax payable for 1974-75, which the assessee knew or had reason to believe to be untrue. The learned ITO imposed penalty for not furnishing an estimate of advance tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resentative contended that on facts the order of the AAC is quite correct and as such may be sustained. 10. In our opinion, the order of the learned AAC could hardly be sustained. The learned ITO imposed penalty on a charge different from the charge levelled at the time of initiation of penalty proceedings. So, the learned ITO imposed penalty on a charge for which the assessee was never given op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r had reason to believe that estimate so filed was untrue. The estimate filed by the assessee was bonafide. We may also point out that there is no material to prove that the assessee filed the estimate knowing it to be untrue or there were reasons to believe that the assessee knew that the estimate was untrue. Thus, from this point of view also, no penalty could be sustained. 11. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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