TMI Blog1988 (12) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... f the advance tax furnished by it was untrue ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal misdirected itself in law in holding that no penalty could be imposed on the assessee under section 273(a) of the Income-tax Act, 1961 ?" The facts relating to this reference are that the Income-tax Officer issued notice under section 210 of the 1961 Act calling upon the assessee to pay advance tax of Rs. 2,55,920. The assessee, however, filed its own estimate on May 24, 1968, as permitted under section 212 of the 1961 Act, wherein the total income estimated by the assessee was shown at Rs. 1,83,000 and the advance tax payable worked out to Rs. 35,750. The assessee filed its return of income for the year under ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [1972] 83 ITR 26, the assessee urged that the penalty proceedings initiated by the Income-tax Officer should be dropped. The Income-tax Officer, however, was not satisfied with the explanation submitted by the assessee and imposed a penalty of Rs. 35,000 under section 273(a) of the 1961 Act. In appeal, the assessee reiterated its submissions which were made before the Income-tax Officer and urged that the order made by the Income-tax Officer under section 273(a) of the Act should be cancelled. The Appellate Assistant Commissioner accepted the submissions made on behalf of the assessee and cancelled the penalty imposed by the Income-tax Officer under section 273(a) of the 1961 Act by his order dated March 11, 1974. Being aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... talments during the financial year 1968-69. In an estimate under section 212, we, however, declared our net total income assessable for 1969-70 at Rs. 1,83,000 and tax payable thereon in advance at Rs. 35,750 which was duly paid. The demand of Rs. 2,55,920 was raised on the basis of the total income of Rs. 5,88,735 assessed for the year 1963-64 but as a result of appeal before the Appellate Assistant Commissioner, such total income stands reduced to Rs. 4,38,480 with a resultant demand of Rs. 2,30,266. It will thus be appreciated that the demand under section 210 raised for the assessment year 1969-70 was based on a total income which had not been correctly computed and, as such, the said demand could not also be regarded as correct. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espectively; while submitting the estimate in 1968, we could not, therefore, ignore the losses incurred by us during the relevant previous years 1966 and 1967 as it was not possible for us to anticipate at that time that on completion of the relevant assessments after three or four years, the losses will be converted into profits and that the benefit of losses actually suffered would not be available. Similarly, it could not be foreseen that disallowance would be made out of expenses actually incurred. Further, we had furnished the estimate after expiry of about five months of the relevant previous year from its beginning. It was not possible for us to anticipate the result of business during the remaining seven months precisely." The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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