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- Appeal against penalty under section 273(1)(b) of the IT Act, 1961 for failure to pay advance-tax. - Dispute regarding obligation to pay advance-tax by the assessee. Analysis: 1. The appeal was filed against the penalty imposed by the ITO under section 273(1)(b) of the IT Act, 1961, which was sustained by the AAC. The assessee contended that there was no obligation to pay advance-tax, thus challenging the legality of the penalty. 2. The assessee, an individual deriving income from various sources, had not filed a statement of advance-tax as required under section 209A(1)(a). The ITO initiated penalty proceedings based on the failure to comply. The assessee argued that due to certain assessments of share income and losses from firms, the total income fell below the non-taxable limit, hence no tax was payable, and no statement of advance-tax was required. The ITO, however, imposed a penalty of Rs. 2,000 under section 273(1)(b). 3. The AAC upheld the penalty, stating that since the assessee had taxable income during the previous year, the failure to submit an income statement for advance-tax purposes justified the penalty. 4. During the appeal, the counsel for the assessee referred to the explanation under section 209, highlighting that there was no liability on the assessee to file an advance-tax statement. The argument was that since there was no obligation to file the statement, the penalty imposed was legally untenable. The Departmental Representative supported the authorities' decisions. 5. The Tribunal analyzed the situation, noting that the total income did not exceed specified limits. It was crucial to determine whether the assessee should have filed a statement of advance-tax as per the ITO's interpretation. The Tribunal referred to relevant sections and explanations, emphasizing that if the current income did not exceed the specified amount, there was no obligation to file an advance-tax statement. Therefore, the penalty imposed was deemed unjustified, and the orders imposing the penalty were set aside, directing its deletion. 6. Consequently, the Tribunal allowed the appeal, ruling in favor of the assessee and overturning the penalty imposed for failure to pay advance-tax.
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