1970 (8) TMI 6

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..... nder section 18A(2) and in accordance therewith it paid two instalments of advance tax of Rs. 38,333 each for the assessment year 1960-61 and three instalments of Rs. 12,875 each for the assessment year 1961-62. Thereafter, the assessee filed revised estimates of tax in the month of March, 1960, and March, 1961, respectively, estimating the tax at Rs. 1,80,000 for each of the assessment years on a total income of Rs. 4 lakhs. The balance of advance tax as per its revised estimate was paid in time after deducting the instalments which had already been paid. The assessee subsequently filed its returns of income for the aforesaid two years declaring the total income of Rs. 4,53,942 and Rs. 7,02,383, respectively. The Income-tax Officer complet .....

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..... sessee has furnished estimates of the tax payable by him which he knew or had reason to believe to be untrue. In the new Act section 212 makes provision for the estimate by the assessee and payment of tax in accordance with that estimate. Section 273 of the new Act empowers the Income-tax Officer to levy penalty on an assessee where he finds at the time of regular assessment that the assessee had furnished, under section 212, an estimate of the advance tax payable by him which he knew or had reason to believe to be untrue. As stated before, the Tribunal was of the opinion that section 297(2)(g) of the new Act did not save proceedings under section 18A of the old Act. According to that provision any proceeding for the imposition of a penal .....

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..... mentioned in section 28(1) of the Act of 1922, if his case falls within the terms of section 297(2)(g). We may usefully refer to this court's decision in Third Income-tax Officer, Mangalore v. Damodar Bhat, with reference to section 297(2)(j) of the Act of 1961. According to it in a case falling within that section in a proceeding for recovery of tax and penalty imposed under the Act of 1922 it is not required that all the sections of the new Act relating to recovery or collection should be literally applied, but only such of the sections will apply as are appropriate in the particular case and subject, if necessary, to suitable modifications. In other words, the procedure of the new Act will apply to cases contemplated by section 297(2)(j) .....

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