TMI Blog1996 (9) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 1972-73 ?" The assessee, K. P. V. Shaik Mohammed Rowther Private Limited, Madras, is a company carrying on business as shipping agents. For the assessment year 1972-73 (previous year ended on June 30, 1971), it filed a return admitting an income of Rs. 1,54,550 on February 9, 1973, and the assessment was finally completed on a total income of Rs. 1,99,870. On March 15, 1972, the assessee had filed an estimate of advance tax estimating the tax payable at Rs. 66,625 and tax as per the estimate was paid on May 24, 1972, by the assessee. As the assessee did not furnish an estimate of advance tax payable before the due date and the estimate filed on March 15, 1972, was not a valid estimate since it was filed belatedly, the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the estimate was not filed before March 15, 1972, penalty is levied under section 273(b) of the Act. It was further submitted that ignorance of law cannot be a ground to excuse the delay in filing the estimate. According to learned senior standing counsel, the Tribunal was not correct in cancelling the penalty on the ground that the delay was technical and therefore, pardonable. On the other hand, learned counsel appearing for the assessee, while supporting the order passed by the Tribunal submitted that inasmuch as the estimate was filed on March 15, 1972, it cannot be said that the assessee has committed deliberately and wilfully any delay in filing the estimate. As per the provisions under section 212(3) of the Act, the estimate should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iable to act in the manner prescribed by the statute." In the present case, the assessee filed an estimate on March 15, 1972, though under section 212(3) of the Act it is stated that the estimate should be filed before March 15, 1972, that means that the estimate should be filed before 12 o' clock of March 14, 1972. But, actually, the estimate was filed on March 15, 1972, when the office was opened. Hence, the delay is not even of one complete day, but a fraction of a day. Penalty cannot be levied under section 273(b) of the Act if the assessee has shown a reasonable cause for the delay. Since the delay is a fraction of a day and the explanation of the assessee is that it is not aware of the provisions, applying the principles laid down b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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