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TMI Blog1962 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is a partner in several firms carrying on business. These firms were registered under the Indian Income-tax Act. They were (1) K.N.P. Arunachala Mudaliar and Co., Tiruchi, (2) P. Ramaswami, Woraiyur, (3) Arunachala Knitting Factory, Karur, (4) P. Perianna Mudaliar Weaving Factory, Srirangam. The assessee was served with a demand notice from the department for payment of advance tax of ₹ 7,947-8-0 under section 18(A)(1) for the assessment year 1952-53. The amount demanded was calculated on the basis of the assessment for the previous completed year 1951-52. The date of the notice was 20th August, 1952. The assessee estimated his total income for the assessment year 1953-54 at ₹ 27,500 and calculated the tax payable f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng tabular statement: 1952-53 1953-54 Rs. Rs. Arunachala Knitting Factory 9,806 2,508 P. Perianna Mudaliar Weaving Factory 3,730 1,299 P. Ramaswami, Woraiyur 13,742 8,661 K.N.P. Arunachala Mudaliar amp; Co. 15,677 20,597 The Income-tax Officer, Tiruchirapalli, took the view that it was upon the assessee to prove that the estimate filed by him was actually based on his accounts, that it was not difficult for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... must take the full responsibility for the original estimate. In the present case, since before the close of the year, the assessee had every reason to know approximately the increase over the figure submitted by him in the original estimate, and as he paid the later instalment of tax only on the basis of the original estimate, a case has been established by taking action under section 28(1)(c) read with section 18A(9)(a). The relevant provisions of section 18A may now be noted. 18A. (1)(a) In the case of income in respect of which provision is not made under section 18 for deduction of income-tax at the time of payment, the Income-tax Officer may, on or after the 1st day of April in any financial year, by order in writing, require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), the assessee shall be deemed, in the case referred to in clause (a), to have deliberately furnished inaccurate particulars of his income, and in the case referred to in clause (b), to have failed to furnish the return of his total income; and the provisions of section 28, so far as may be, shall apply accordingly. 28. (1) If the Income-tax Officer....in the course of any proceedings under this Act, is satisfied that any person....(c) has concealed the particulars of his income or deliberately furnished inaccurate particulars of such income, he...may direct that such person shall pay by way of penalty, ...in addition to any tax payable by him, a sum of.... The point that arises for decision is whether the assessee furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted the estimate. It cannot be said that he made a random guess of his income as ₹ 27,500 as given in his estimate. Nor can it be said that he was so reckless at that time that he did not care to ascertain whether his estimate was true or false. Surely he had the business accounts before him when he made the estimate. There is no reason to disbelieve the assessee's version that he based the estimate only on the trend of income as disclosed by his business account. It is not the department's case that even on the figures available to the assessee in September, 1952, the estimate submitted by him was not in accord with the book results. We have, therefore, to proceed on the footing that the assessee made an honest and fai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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