- (1.) THE Income-tax Appellate Tribunal, Chandigarh Bench, has referred the following questions of law to us for our opinion : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that after making an order under Section 210 on the basis of the provisional assessment for the year 1966-67, an amended order under Section 210 (3) based on the regular assessment for the assessment year 1966-67 could not be made? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the penalty levied under Section 273 (a) ?
(2.) THE assessee is a private limited company engaged in the business of passenger transport. During the financial year 1967-68, relevant to the assessment year 1968-69, the assessee was called upon to pay advance tax in the sum of Rs. 14,467 by a notice dated June 30, 1967, issued under Section 210 of the I. T. Act (hereinafter called "the Act"), on the basis of the provisional assessment for the year 1966-67. Later on, the ITO framed an assessment for the year 1966-67 at Rs. 1,77,954 and on that basis he amended the notice under Section 210 of the Act calling upon the assessee to pay a sum of Rs. 1,15,670, which amount after making an adjustment of the payment of Rs. 4,828 already made by the assessee, was held to be payable. In response to this notice, the assessee filed its own estimate on January 24, 1968, and repeated therein the figure of total income of Rs. 22,256, which was the same figure as mentioned in the earlier notice under Section 210 of the Act issued by the ITO whereby he had demanded an advance tax in the sum of Rs. 14,467.
(3.) WHEN the assessee filed the return for the assessment year 1968-69, it disclosed a total income of Rs. 1,41,417. The assessment in respect of this year was completed at Rs. 2,10,956 which was subsequently reduced to Rs. 1,58,863.;