Y.R.Meena, J. - (1.) On an application under Section 256(2) of the Income-tax Act, 1961, the Tribunal has referred the following questions set out at page 2 of the paper book for our opinion : "1. Whether, on the facts and in the circumstances of the case and on a correct interpretation of Section 209A of the Income-tax Act, 1961, the Tribunal was justified in law in holding that there was no statutory obligation on the assessee to file the estimate of income-tax filed by it and in that view holding that no penalty under Section 273(1)(a) of the said Act was exigible in this case ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in cancelling the penalty under Section 273(1)(a) of the Income-tax Act, 1961 ?"
(2.) The assessee is a company. The return is filed by the assessee on December 3, 1985 for the assessment year 1985-86. During this year the assessee has total production of green leaves 19,72,700 kgs. and net production of tea is 16,32,444 kgs. The rate of production during this year comes to 24.05 per cent, while in the preceding assessment year the production of green leaves was 16,32,444 kgs., the rate of production was 25.11 per cent. A query was put to counsel for the assessee regarding shortfall of percentage in the yield. In reply a reason given for the shortfall in the production of tea that the tea production depends upon the quality of the green leaves produced in the garden and the quality depends upon rain and weather conditions.
(3.) The Assessing Officer has further found that the assessee has filed an untrue estimate of advance tax payable during the previous year relevant to the assessment year under consideration. He imposed the penalty of Rs. 7,03,000 under Section 273 as provisions of the Income-tax Act, 1961.;