1982 (2) TMI 103 - 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 an estimate under section 212(3A) for penalty purposes.

Detailed Analysis:
1. The case involved an appeal against a penalty of Rs. 17,712 imposed 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 paid advance taxes, but the ITO initiated penalty proceedings. The assessee contended that the belated estimate was still valid under section 212(3A) and not punishable under section 273(c. The Tribunal analyzed relevant case law but upheld the penalty, stating that the ITO was justified in penalizing for non-filing of the estimate within the stipulated time.

2. The issue of the maintainability of the appeal before the Commissioner (Appeals) after seeking relief under section 273A was raised. The revenue argued against the appeal, citing the dismissal of the application for penalty waiver by the Commissioner under section 273A. However, the Tribunal held that there was no bar under section 246 for the assessee to seek relief under both sections, and referred to a High Court decision supporting this view.

3. The interpretation of whether a belated estimate constituted an estimate under section 212(3A) for penalty purposes was crucial. The assessee argued that the belated estimate should not attract penalty under section 273(c as it was still an estimate, citing High Court decisions treating belated payments as valid. However, the Tribunal found that the ITO had not acknowledged the belated estimate and upheld the penalty, emphasizing that the letter of the law must be followed, regardless of equitable considerations.

In conclusion, the Tribunal upheld the Commissioner (Appeals)'s decision to sustain the penalty imposed by the ITO under section 273(c) and dismissed the appeal filed by the assessee. The judgment clarified the application of advance tax provisions, the maintainability of appeals under different sections, and the distinction between timely and belated estimates under the Income-tax Act.