TMI Blog2003 (9) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the case - Tribunal is right in law and on facts in cancelling the penalty - - - - - Dated:- 11-9-2003 - Judge(s) : D. H. WAGHELA., D. A. MEHTA. JUDGMENT The judgment of the court was delivered by D. A. MEHTA J.-This is a reference at the instance of the Commissioner of Income-tax under section 256(1) of the Income-tax Act, 1961 ("the Act" for short). The Income-tax Appellate Tribunal, Ahmedabad Bench "A", has referred the following question for our opinion: "Whether, the Appellate Tribunal is right in law and on facts in cancelling the penalty levied by the Income-tax Officer under section 273(2)(a) amounting to Rs. 15,000 ?" Heard Mrs. M. M Bhatt, learned standing counsel for the applicant-Revenue. Though ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 1979-80 and till the point of time the assessee filed the estimate of the advance tax the assessment for the said assessment year had not been disturbed. The Tribunal for the reasons stated in its impugned order dated December 19, 1989, accepted the submissions made on behalf of the assessee and cancelled the penalty. Mrs. Bhatt, learned standing counsel appearing on behalf of the applicant-Revenue, submitted that the Tribunal had erroneously placed reliance on the assessment order for the assessment year 1979-80 because the said order has been revised under section 263 of the Act. It was further submitted that whether the assessee was under a bona fide belief or not had not been proved by the assessee and the Income-tax Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interfere with the impugned order of the Tribunal dated December 19, 1989. The Tribunal has rightly held that merely because an assessee is assessed at a higher figure that by itself is not sufficient to hold that the estimate filed by the assessee was untrue resulting in the assessee being penalised for filing an incorrect estimate. The provision requires that the estimate must be false, viz., that the assessee knew or had reason to believe that the estimate of advance tax was untrue. In the present case, the assessee has pleaded a bona fide belief as regards the applicable provisions to the facts of the case and the assessee is duly supported by the assessment order for the assessment year 1979-80, i.e., immediately preceding assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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