BANERJEE, J. - (1.) THE following question of law has been referred to this Court by the Tribunal under S. 256(1) of the IT Act, 1961 ('the Act') : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the estimate filed by the assessee on 18th Dec., 1979 was not a valid estimate and therefore, could not be acted upon for imposition of penalty under S. 221(1) of the IT Act, 1961?"
(2.) THE assessment year involved in this reference is the asst. yr. 1980-81 for which the accounting period is ended on 31st Dec., 1979. In the instant case, the assessee was a regular assessee. No notice of demand was served upon the assessee demanding payment of payment of advance tax. The Tribunal found that the assessee filed the estimate on 18th Dec., 1979 which was dt. 6th Dec., 1978. The estimate was admittedly filed beyond the time prescribed under the law.
(3.) THE point is already concluded the judgment in the case of Babulal Newar vs. CIT (1978) 112 ITR 399 (Cal). The principles laid down in that case is that an estimate which was filed beyond time was not a valid estimate and since it was not a valid estimate no interest could be charged on the basis of such estimate. In the instant case, not the estimate was an invalid one but there was no demand by the ITO for payment of advance tax.;