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Issues:
1. Interpretation of section 212(3A) of the Income-tax Act, 1961 regarding the obligation to file an estimate for advance tax. Analysis: The case involved a registered firm that failed to comply with an advance tax demand raised by the Income-tax Officer and subsequently filed an estimate under section 212(1) which was lower than the actual income. The Income-tax Officer initiated penalty proceedings for non-compliance with section 212(3A) and levied a penalty. The Appellate Assistant Commissioner canceled the penalty, but the Revenue appealed, arguing that the obligation under section 212(3A existed regardless of the estimate filed under section 212(1). The Tribunal upheld the penalty, leading to the reference to the High Court. The High Court analyzed the provisions of section 212(3A) which require an assessee to file an estimate if the current income exceeds the advance tax demanded by 33 1/3%. The court held that filing an estimate under section 212(1) does not absolve the assessee from the obligation to file a further estimate under section 212(3A if the current income increases. The court emphasized that sections 212(1), 212(2), and 212(3A) operate in distinct scenarios based on the tax liability relative to the demand under section 210. Failure to file a required estimate under section 212(3A attracts penalty under section 273(c). The court distinguished prior judgments like Hind Products (P) Ltd. v. CIT and CIT v. Bharat Machinery & Hardware Mart, emphasizing the specific obligation under section 212(3A. The court noted that the case's facts aligned with the requirement for filing an estimate under section 212(3A due to the increased income exceeding the earlier estimate. The court rejected the argument that filing an estimate under section 212(1) negates the need for compliance with section 212(3A, upholding the penalty imposed by the Income-tax Officer. In conclusion, the High Court answered the reference question in favor of the Revenue, affirming the obligation of the assessee to file an estimate under section 212(3A. The court awarded costs to the Revenue and clarified the legal interpretation regarding advance tax estimates under the Income-tax Act, 1961.
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