TMI Blog1989 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee on September 15, 1969, under section 212 of the Income-tax Act, 1961, was not an estimate which the assessee knew or had reason to believe to be untrue ? (2) Whether, on the facts and in the circumstances of the case and having regard to the finding of the Tribunal that the assessee had already come to know about the upward revision of the price of the products and in view of the fact that the assessee itself made a sale on March 12, 1970, of its products at the revised higher price, the Tribunal had no evidence or had relied on irrelevant materials to hold that the revised estimate of advance tax payable furnished by the assessee under section 212 of the Income-tax Act, 1961, on March 12, 1970, was not an estimate which the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice was decided. The Income-tax Officer did not accept the explanation of the assessee as, according to him, the rise in price was known to the assessee through its officer who attended the meeting on February 28, 1970, of the association. The assessee later on took another plea that the assessee was to receive a large subsidy from the Government but the Government refused to accept the liability and that had the effect of nullifying the excess profits received by the assessee by the rise in price and that this fact was also taken into consideration in preparing the final estimate of advance tax. The Income-tax Officer was of the view that this explanation was an afterthought. He held that the assessee submitted the estimate of advance tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the conditions and circumstances as on the date of the estimate. On the facts of this case, the estimate made by the assessee could not be said to be untrue to the knowledge or belief of the assessee. The penalty order was not sustainable and was, accordingly, cancelled. Whether the estimate made by the assessee was bona fide or true to his knowledge or not is a question of fact. The Tribunal has referred to all the facts that were brought on record. The decision of the Tribunal cannot be held to be perverse. The Tribunal has considered all the facts brought to its notice by the Department as well as the assessee. Under these circumstances, both the questions are answered in the negative and in favour of the assessee. There will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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