9911796707
TMI Blog1981 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... and the tax of Rs. 4,610 was demanded. This said tax appears to have been paid by assessee. Return for the asst. yr. 1974-75 was filed by the assessee on 21st October, 1974 showing an income of Rs. 28,764. Assessment under s. 143(3) was completed on 28th March, 1977 on a total income of Rs. 39,275 which was subsequently revised downwards to Rs. 29,682. 3. As the assessed income of the assessee for the asst. yr. 1974-75 was determined by the ITO at much higher figure (i.e. Rs. 39,275) than that on which assessment for the asst. yr. 1971-72 had been framed and as the tax payable on the income of Rs. 39,275 was going to be more than 331/2 per cent of the tax demand of Rs. 4,610 created for the asst. yr. 1971-72 and decided under s. 210(1) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count of which the liability in terms s. 212(3A) is being fastened on the assessee would no more be there. 6. The ld. AAC, however, rejected the assessee's above stand by pointing out that the CIT (A) has already rejected the claim of the firm M/s. Bhargava Book Depot with regard to s. 80QQ of the IT Act, 1961 and, therefore, according to him, there was no merit in the assessee's aforementioned plea. He, therefore, rejected the assessee 's appeal in principle, but granted him some relief on account of quantum and reduced the penalty imposed by the ITO from Rs. 1,400 to Rs. 700. 7. The assessee feels aggrieved of the aforesaid order of the ld. AAC and points out that the income which the assessee had earned as per his own return was, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m M/s. Bhargava Book Depot in which he was partner and, therefore, his share from M/s. Bhargava Book Depot was to be correspondingly less. The mere fact that the CIT (Appeals) has rejected the firm's appeal with regard to its eligibility to s. 80QQ relief did not determine the issue finally and, in fact, in the present case IT Appl. Tribunal have vide its order in ITA No. 520(Alld)/1979 dt. 16th July, 1980 restored the matter back to the CIT (A) with the directions to give his decision on the assessee's application on merits and as such the plea of the assessee that he was sanguine about his claim under s. 80QQ was not a mere pretence and once the assessee entertained a bona fide belief in that regard, he was entitled to act in terms of tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,764 as against the real income of Rs. 8,764. This mistake, however, would not make the assessee's income what it, in fact, was not and, in any the assessee's impression that he had much lesser income during accounting year than that on which notice under s. 210 there was apparently no obligation on the assessee to file an estimate under s. (3A) of 212 and as such there could be no occasion for penalising him for not doing what he need not have do in law. The assessee's belief that the firm M/s. Bhargave Book Depot would be eligible for relief under s. 80QQ was bonafidely held by the assessee and simply because the CIT (A) has not accepted the assessee's plea ultimately would not go to change the state of mind of the assessee as on the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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