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TMI Blog2001 (10) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax filed by it and in that view holding that no penalty under section 273(1)(a) of the said Act was exigible in this case? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in cancelling the penalty under section 273(1)(a) of the Income-tax Act, 1961?" The assessee is a company. The return is filed by the assessee on December 3, 1985 for the assessment year 1985-86. During this year the assessee has total production of green leaves 19,72,700 kgs. and net production of tea is 16,32,444 kgs. The rate of production during this year comes to 24.05 per cent. while in the preceding assessment year the production of green leaves was 16,32,444 kgs., the rate of production was 25.11 per cent. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1994]7 207 ITR 1087 (Cal). Learned counsel for the Revenue has submitted that the year ending in this case is February 28, 1985, the estimate filed on December 3, 1985, income estimated was Rs.12,79,000 tax paid Rs.7,42,000, income assessed Rs.29,93,290 tax paid Rs.16,87,795, 831/3 per cent. thereon Rs.14,06,000. On these facts when the estimate filed was untrue, the penalty under section 273 has rightly been imposed at Rs.7,03,000. In the case of Indian Molasses Company (P.) Ltd. [1993] 200 ITR 149 (Cal) this court has taken the view that where the assessed income and the returned income of the latest previous year of the assessee-company were minus figures, no statement of advance tax under section 209A of the Income-tax Act, 1961, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in holding that no penalty was exigible under section 273(a) of the Income-tax Act in the case of the assessee for the assessment year 1975-76 and cancelling the penalty of Rs. 2,557." The reference is answered in favour of the assessee and against the Revenue. When the assessee was not under obligation to file the estimate of advance tax, if he has filed the estimate of advance tax without notice or orders served on an assessee under section 210(3), in that case the estimate filed cannot be considered for the purpose of penalty. We agree with the view taken by the Rajasthan High Court in the case of Power Plants Sale and Services Pvt. Ltd. [1994] 209 ITR 655. In the result, we answer both the questions in the affirmative, i.e., in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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