9911796707
TMI Blog2004 (11) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... eviable. Thus order of CIT (Appeals) deleting the penalty does not suffer from any legal infirmity. - For calculating the amount of tax paid during the year, the entire amount of advance tax whether it has been paid in time or after the due date but not after the close of the financial year has to be taken into consideration. – Revenue appeal dismissed - - - - - Dated:- 3-11-2004 - Judge(s) : R. K. AGRAWAL., P. KRISHNA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following two questions of law under section 256(1) of the Income-tax Act, 1961 for opinion to this court: "1. Whether, in law and on facts of the case, the Income-tax Appellate Tribunal was justified in confirming the Commissioner of Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him which he had reason to believe to be untrue. As the tax paid by the respondent fell short of 75 per cent, of the assessed tax, he imposed a sum of Rs. 37,970 as penalty. The respondent preferred an appeal before the Commissioner of Income-tax (Appeals) who deleted the penalty which order has been affirmed by the Tribunal. We have heard Shri A.N. Mahajan, learned standing counsel for the Revenue and Shri R.S. Agrawal, learned counsel for the respondent. Learned counsel for the Revenue submitted that as the respondent had filed an incorrect and untrue estimate of advance tax, the penalty had rightly been imposed. The submission is misconceived. Under section 273(i) of the Act penalty has been provided for filing false estimate or failur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, but shall not exceed one and a half times of seventy-five per cent. of the assessed tax as defined in sub-section (5) of section 215; and (iii) which, in the case referred to in clause (c), shall not be less than ten per cent. But shall not exceed one and a half times the amount by which the tax payable under the notice issued to the assessee under section 210 falls short of seventy-five per cent. of the assessed tax as defined in sub-section (5) of section 215." From a reading of the aforesaid provisions it appears that even where an estimate of advance tax has been incorrectly filed or is untrue, the quantum of penalty is to be calculated with reference to the tax paid during the financial year immediately preceding the year whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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