- (1.) The present appeal filed under Section 260A of the Income Tax 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 Commissioner (Appeals) imposed under Section 273(2)(aa) of the Income Tax Act, 1961 by the assessing officer 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 assessment year 1987-88.
(3.) The background facts in nut shell essentially are as follows.;