Ajit K.Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1976-77, the following question of law has been referred to this court : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is justified in law in holding that the Commissioner of Income-tax was not entitled to exercise his jurisdiction under Section 263 of the Income-tax Act for failure of the Income-tax Officer to initiate penalty proceedings under Section 273(a) of the Income-tax Act ?"
(2.) The facts, shortly stated, are that the Income-tax Officer did not initiate any penalty proceedings under Section 273(a) of the Income-tax Act while making the assessment in question. The Commissioner of Income-tax was of the opinion that the notice under Section 210 of the Income-tax Act had been served upon the assessee calling for payment of advance tax of Rs. 96,372. The assessee filed an estimate under Section 212 on September 11, 1975, showing an estimated income of Rs. 50,000 whereupon the tax payable came to Rs. 36,750.
(3.) The tax was paid as under : JUDGEMENT_337_ITR192_1991Html1.htm;