RAM SINGH HARI CHAND AND CO Vs. INCOME TAX OFFICER
INCOME TAX APPELLATE TRIBUNAL
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F.C. Rustagi, Judicial Member -
(1.) THE only contention raised by the assessee in this appeal is in respect of penalty amounting to Rs. 550 levied by the ITO under Section 273(1)(A)(ii) of the Income-tax Act, 1961 ("the Act"), and confirmed by the AAC in the assessee's first appeal before him for default of the assessee under Section 209A(1)(a) of the Act. THE assessment year involved is 1979-80.
(2.) The facts pertaining to the issue are in short compass. The appellant was an old assessee. Up to the date when first instalment of advance tax was due, the assessee did not file any estimate of advance tax as contemplated by Section 209A(1)(a), i.e., up to 15-9-1978. The assessee, however, filed estimate in Form No. 29 on 12-3-1979 estimating its liability to tax at Rs. 6,325. When the assessment in this case under Section 143(3) of the Act was framed at Rs. 85,469 and while levying the said penalty, the ITO observed as under :
The assessee had, however, come forward with an explanation before the ITO that it had not filed any statement of advance tax as its current income was below taxable limit up to the date of first instalment, i.e., 15-9-1978.
When the issue was carried by the assessee before the AAC, he came to confirm the said penalty.
(3.) IT is this action of the AAC which is contested by the assessee before us. The learned counsel for the assessee, Shri D.S. Gupta, after reading out Section 209A submitted that it is not obligatory in all cases to warrant filing of estimate of advance tax up to the date of first instalment due for advance tax. He also submitted that the assessee had come forward with an explanation before the ITO which though finds a mention in his order but was not dealt with or rejected as such by him. In order to highlight the bonafides of the assessee, he submitted that at the time when third instalment of advance tax was due the assessee came forward with an estimate of income and filed the same and deposited the tax accordingly. He submitted that it was under the bona fide belief that his income was below taxable limit. For the purpose of filing the said estimate that the assessee did not file the same (sic) and, according to him, the ITO came to a conclusion without a finding in respect of the assessee's explanation raised before him.;
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