9911796707
TMI Blog1990 (3) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... claring a total income at Rs. Nil. The assessment was completed by the ITO on 18th March, 1986 on a total income of Rs. 1,94,380. 3. On account of the variation in the figures of estimated income, the returned figure and the assessed income, the ITO initiated penalty proceedings and issued a show-cause notice to the assessee. In response to the notice the assessee stated that the assessed income of Rs. 1,94,380 came about as a result of various addition although the returned income was Rs. NIL. This plea was rejected by the ITO on the ground that the assessee was having a taxable income of Rs. 1,94,380 and was under legal obligation to file an estimate and pay the tax accordingly. According to the ITO the penalty was exigible on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion the learned counsel invited our attention to the assessment orders for asst. yrs. 1978-79, 1979-80 and 1980-81 the copies of which were furnished during the course of the hearing. He specially referred to the order for asst. yr. 1980-81 for which the return was filed showing Nil income and a carry forward of Rs. 2,54,569 (subsequently increased to Rs. 2,64,622) was also claimed as relief under s. 80J. He also referred to the fact that in asst. yr.1981-82 the return was filed showing Nil income and the assessment was completed accordingly. In respect of asst. yr. 1982-83 also it was stated that the return was filed showing Nil income. 6. On the basis of the aforesaid submissions and facts the learned counsel advanced detailed argument ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... den is on the Revenue to show that the estimate of advance tax furnished by the assessee was false to his knowledge or was believed by him to be inaccurate. The fact of the case as narrated above, are sufficient enough to gather the intention of the assessee. The intention of the assessee cannot be said to be mala fide in this case and hence the learned ITO has ignored this bona fide belief being a reasonable cause of the assessee and has arbitrarily concluded his finding that the estimate filed by the assessee was false to his knowledge or was believed by him to be untrue. Now, the basic point which is to be decided by your honour whether in the particular circumstances, as narrated above, the assessee could be said to have filed false ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finally made and impassioned plea for the cancellation of the penalty. 8. The learned D.R. on the other hand strongly supported the orders of the authorities below. The further submissions made by him were in fact a reiteration of the reasons as had weighed with these authorities in levying and confirming the levy of penalty. 9. We have examined the rival submissions and have also perused the orders of the authorities below. In our opinion this not a fit case where the penalty under s. 273(1)(a) is exigible. A perusal of the record shows that in all the earlier assessment years the assessee has been furnishing the returns showing Nil income and some of these were accepted as such whereas in others the assessments were completed at posi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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