9911796707
TMI Blog2001 (5) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... imate in law? 2. Whether, on the facts and in the circumstances of the case, the order dated May 25, 1977, passed under section 210 of the Income-tax Act, 1961, is valid in law ? 3. Whether in arriving at the conclusion and finding the Tribunal has ignored any relevant material or has relied on irrelevant material and whether such conclusion and finding is otherwise unreasonable and per verse? 4. Whether the Tribunal was justified in law in confirming the levy of penalty under section 273(1)(a) of the Act?" In compliance with the direction of this court the aforesaid questions are referred for the opinion of this court. The assessee-company had filed its original return on November 15,1978, and then revised returns were filed on D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and he further pointed out that there was an unsettled condition that followed in the wake of the raid conducted by the Department in 1976. Therefore, the estimate of income as required for advance tax has not been correctly filed. In appeal before the Tribunal, the Tribunal has considered the various aspects including the fact that when there was a vast difference between the estimate filed and the income returned that too when the estimate has been filed after one and a half months from the closing of the accounting year. The Tribunal has restored the penalty imposed by the Assessing Officer. Heard learned counsel for the parties. Learned counsel for the assessee has not pressed questions Nos. 1 and 2 referred by the Tribunal. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue submits that the statements were filed after one and a half months from the date of accounting year ending and difference between the estimate of income filed and the income shown in the return is almost 100 per cent, that is the income shown in the return is just double the income estimated for the purpose of advance tax under section 209A of the Act. The only inference in those circumstances that can be drawn is that the assessee has filed a false estimate which he knew or had reason to believe to be untrue. Whether the Tribunal has ignored any relevant material or has relied on irrelevant material before we consider that fact we would like to refer to the decisions cited by learned counsel for the assessee that mere differenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no evidence that at the material time when the assessee filed the estimate the assessee had know-ledge that its profits would increase. When it was not in the knowledge of the assessee regarding increase in the profits, this court has taken the view that there is no case for penalty under section 273 of the Act. In the case of CIT v. Birla Cotton Spinning and Weaving Mills Ltd. [1985] 155 ITR 448 (Cal), the assessee filed the estimate on the basis of material of the previous years and materials available at the time when the estimates were filed. Increase in the profit in the ginning and pressing factories was not available with the assessee when estimate was filed. This court has taken the view that there was no case for penalty. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance tax which he knew or had reason to believe to be untrue. The penalties in the aforesaid judgments had been cancelled on a finding that the assessee had furnished the false estimate which he did not know or had no reason to believe to be untrue. In the case in hand the admitted facts are that the books of account for the accounting year relevant to the assessment year were not seized by the income-tax authorities during the course of raid conducted on October 27, 1976. They are with the assessee from the first day of the accounting year till the estimate of income has been filed as required under section 209A of the Act. The year ending in this case is October, 1977, and the assessee has furnished the estimate on December 15, 1977. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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