S.K.GUPTA, J. - (1.) THE present appeal filed under s. 260A of the IT Act (hereinafter referred to as 'the Act') has been admitted on the following question of law framed in the memo of appeal : "Whether on the facts and in the circumstances of the case, the Tribunal was legally justified in upholding deletion of the penalty of Rs. 4,21,230 by the CIT(A) imposed under s. 273(2)(aa) of the IT Act,1961 by the AO whereas, the assessee has furnished wrong estimate of advance tax knowing fully well that the same was wrong and reason to believe to be untrue, since the sales -tax liability is an income of the assessee as, the same is liable to be deductible in computing against the taxable income."
(2.) THE present appeal relates to the asst. yr.1987 -88.
(3.) THE background facts in nut shell essentially are as follows. Estimating the income respectively at Rs. 2.80 crores and Rs. 3.40 crores. The advance tax was paid in accordance with these estimates.;