9911796707
TMI Blog1993 (3) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... y with the provisions of section 209A read with section 273(2)(aa) of the Income-tax Act, 1961, and, whether the cancellation of penalty of Rs. 16,860 is legally justified ?" The background facts as culled out from the various orders are as follows : Messrs. Orissa Flour Mills (Pvt.) Ltd. (hereinafter referred to as "the assessee"), is assessed to tax since a long time. For the assessment year 1980-81, corresponding to the accounting period which ended on October 19, 1979, the assessee did not file a statement or estimate of its income as required under section 209A of the Act within the prescribed time. Therefore, a notice under section 210 of the Act was issued on October 11, 1979, by the Income-tax Officer, Ward 'A', Sambalpur, deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed which, according to him, was the minimum imposable. The assessee's appeal before the Commissioner of Income-tax (Appeals) was dismissed, since the Commissioner of Income-tax (Appeals) did not accept the contentions of the assessee. In further appeal before the Tribunal, the turnover of various years and corresponding incomes were submitted in detail. It was pleaded that considering the slight increase in turnover and the very fact that the assessee itself had submitted the estimates showing the estimated income of Rs. 2 lakhs, its conduct was bona fide. The Revenue's stand, on the other hand, was that, merely because the turnover had increased marginally, it is not sufficient for the assessee to escape from the responsibility of filing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w arises out of the Tribunal's order. For attracting penal action under section 273A, it has to be shown that the assessee has furnished under sub-section (4) of section 209A or under sub-section (3A) of section 212, the estimate of advance tax payable which it had reason to believe to be untrue. Therefore, materials must be brought on record to show that the estimate of advance tax payable filed was known by the assessee to be untrue or that he had reason to believe that it was untrue. The use of the expression "estimate" is suggestive of the possibility of some amount of inaccuracy and uncertainty. But law postulates an honest estimate. Unless it is proved that the low estimate was the outcome of a design and was not bona fide, penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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