SAMY AUTO PARTS Vs. FIRST INCOME TAX OFFICER
INCOME TAX APPELLATE TRIBUNAL
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S. Kannan, Accountant Member -
(1.) THIS appeal by the assessee is directed against the order dated 27/9/1988 of the Dy. Commissioner of Income-tax (Appeals), A-Range, Madurai, relating to the assessment year 1982-83.
(2.) The facts of the case are that the assessee, a firm, filed on 15-6-1981, an estimate of the tax payable by it in advance, estimating its income at Rs. 70,000. It is common ground that the assessee did not pay any tax in accordance with the said estimate. On 15-12-1981, itfiled another estimate, revising its income upwards to Rs. 85,000. On the basis of this estimate also, admittedly, no tax was paid. It was only while filing its return of income that it paid self-assessment tax under Section 140A of the Act. The assessment was completed on a total income of Rs. 88,740.
In the course of the assessment proceedings, the Income-tax Officer called upon the assessee to show cause why penalty under Section 273(1)(b) could not be levied for not furnishing an estimate of income for purposes of advance tax in accordance with the provisions of Section 209A. The assessee's response was that penalty under the said section could be levied only in cases where the assessee failed to furnish either a statement of the advance tax payable or an estimate in lieu thereof. In this case, however, the assessee had actually filed two estimates. Therefore, no penalty was exigible under the said section.
The said argument did not find favour with the Assessing Officer who proceeded to levy a penalty of Rs. 6,000 under Section 273(1)(b).
(3.) THE first appellate authority declined to interfere in the matter, because, according to him: "THE purpose of enacting the law relating to advance tax is to collect the income-tax regularly at the intervals of 3 months and asking the assessee for filing the estimate is a preliminary Act which should be followed with payment of advance tax due as per the estimate. If the tax is not paid as per the estimate filed, there is no sense to file an estimate at all. Thus the appellant has committed the default under Section 273(1)(b) in as much as he has not paid the tax as per his own estimate".;
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