9911796707
TMI Blog1992 (12) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case, the Tribunal has rightly cancelled the penalty of Rs. 2,600 levied on the assessee under section 273(b) of the. Income-tax Act, 1961 ?" The assessment year involved is 1969-70. The assessee had failed to file the estimate of its income under section 212(3) of the Income-tax Act, 1961(hereinafter in short, " the Act within the prescribed time. Accordingly, a penalty of Rs. 2,600 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion with the regular assessment, is satisfied that any assessee -. . . . (b) has without reasonable cause failed to furnish an estimate of the advance tax payable by him in accordance with the provisions of sub-section (3) of section 212, he may direct that such person shall, in addition to the amount of tax, if any, payable by him, pay by way of penalty a sum-. . .. (ii) which, in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s paid advance tax under section 212 on the basis of his own estimate, and the advance tax so paid is less than seventy-five per cent. of the tax determined on the basis of the regular assessment (reduced by the amount of tax deductible in accordance with the provisions of sections 192 to 194, section 194A and section 195 ) so far as such tax relates to income subject to advance tax and so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 215 ". Under section 215(1), this amount can be ascertained only on the basis of " tax determined on the basis of the regular assessment ". Therefore, it is clear that the penalty under section 273(b) of the Act is dependent on the quantum of tax assessed against the assessee. Since in the present case the very order of assessment has been set aside as barred by limitation, no tax liability r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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