1982 (2) TMI 102 - AT - Income Tax

Summary

Issues:
1. Penalty under section 273(c) of the Income-tax Act for non-compliance with advance tax provisions.
2. Maintainability of appeal before the Commissioner (Appeals) after seeking relief under section 273A.
3. Interpretation of whether a belated estimate constitutes compliance with section 212(3A) for penalty purposes.

Detailed Analysis:
Issue 1: The case involved an appeal against a penalty of Rs. 17,712 levied by the ITO under section 273(c) of the Income-tax Act for non-compliance with advance tax provisions. The assessee had filed an estimate after the prescribed deadline and failed to pay the full advance tax amount on time. The ITO initiated penalty proceedings based on non-compliance with section 212(3A) requirements. The assessee argued that the belated submission of the estimate should not be punishable under section 273(c, citing relevant case law. However, the tribunal upheld the penalty, stating that the belated estimate was not considered compliant, and the penalty was rightly levied.

Issue 2: The revenue objected to the maintainability of the appeal before the Commissioner (Appeals) as the assessee had already sought relief under section 273A, which was dismissed. The revenue argued that the appeal should not have been entertained. The tribunal held that there was no bar to seeking relief under both sections, and the appeal was maintainable. Citing a relevant High Court decision, the tribunal rejected the revenue's objection.

Issue 3: The key question was whether the belated estimate filed by the assessee constituted compliance with section 212(3A) for penalty purposes under section 273(c). The assessee argued that despite the delay, the estimate should be considered valid. However, the tribunal disagreed, emphasizing that the ITO had not acknowledged the belated estimate as compliant at any stage. Referring to case law, the tribunal concluded that the penalty was rightly upheld by the Commissioner (Appeals) as the estimate was not filed within the stipulated time frame, regardless of the belated submission.

In conclusion, the tribunal upheld the Commissioner (Appeals)'s decision to sustain the penalty under section 273(c) and dismissed the appeal filed by the assessee. The judgment clarified the interpretation of compliance with advance tax provisions and the implications of belated submissions in penalty proceedings under the Income-tax Act.