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TMI Blog1990 (8) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee. As the current income of the assessee exceeded by more than 33-1/3 per cent on the income subject to advance tax, the assessee was required to file an estimate of advance tax under s. 209A(4) but this was not done. The ITO, therefore, initiated penalty proceedings against the assessee under s. 273(2)(c). A show-cause notice was issued to the assessee but there was no compliance. The ITO, therefore, concluded that the assessee was not prevented by a sufficient cause from filing an estimate of advance tax under s. 209A(4) and hence the assessee was liable for penalty. Observing that the maximum and minimum penalties leviable amounted to Rs. 18,350 and Rs. 1,220, respectively, the ITO imposed a penalty of Rs. 2,000 under s. 273 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fault contemplated under cl. (c) shall not be less than 10 per cent of the amount by which the tax payable in accordance with the statement of advance tax fell short of 75 per cent of the assessed tax. It was contended that tax payable for the purpose of computation of quantum of penalty has to be computed on the amount of Rs. 53,500 treating the assessee as an unregistered firm and if it was done, the minimum amount of penalty imposable would come to Rs. 182. In this connection our attention was invited to computation of penalty as given at page 3 of the paper book filed by the assessee. In support of this contention the learned counsel for the assessee relied upon the decision of the Karnataka High Court in Addl. CIT, Mysore vs. Khanchand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ." 10. The language of Expln. 2 makes it clear that for the purpose of determining penalty imposable under s. 273(2)(C), the assessee firm is to be treated as an unregistered firm. Sub-cl. (iii) of s. 273(2)(C) speaks of "tax payable" in accordance with the statement or estimate of advance tax paid under s. 209A(1(a). As has already been stated above, the assessee filed statement of advance tax estimating its income at Rs. 53,500. In view of Expln. 2 for the purpose of imposing penalty, the assessee is to be treated as an unregistered firm and, therefore, for determining the tax payable in accordance with the statement of advance tax paid by the assessee it has to be treated as an unregistered firm. It has not been disputed before us that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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