9911796707
TMI Blog1991 (9) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... 980-81). In the returns, they showed their income to be Rs. 9,34,061 on March 31, 1982, by the return dated June 30, 1982. Petitioner No. 1 company had submitted its estimate of income and has paid advance tax of Rs. 4,92,000 on an estimated income of Rs. 8,00,000. Petitioner No. 1 company, along with the return, paid the balance tax of Rs. 82,500 on their income of Rs. 9,34,061. The Income-tax Officer, after hearing the parties, assessed the income of petitioner No. 1 company to be an amount of Rs. 10,19,530. The Incometax Officer also issued a demand notice for the balance of tax to be paid as tax on the said amount of Rs. 10,19,530 being Rs. 6,27,010. As the difference between the advance tax paid on self-assessment and the tax on the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the judgment and order on the application of January 10, 1991, as well as for quashing the criminal proceeding on the ground that, in view of the judgment in appeal by the Income-tax Appellate Tribunal, the difference between the tax paid and the tax to be paid did not exceed 20 per cent. which is a sine qua non for filing the complaint. The learned advocate Mr. Shah for the petitioners has not pressed this petition against the order passed by the learned Additional Chief Metropolitan Magistrate on his application filed under section 279(1A) of the Act. Mr. Shah has pressed this petition only on the ground that the proceedings of the Criminal Case No. 134 of 1987 should be quashed as the substratum for filing the complaint did not ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company has committed an offence punishable under section 276C of the Act. The ingredients to constitute a breach of subsection (3A) of section 212 of the Act are (1) the assessee is required to pay advance tax by an order under section 210 ; (2) (a) the current income is likely to be greater than the income on which the advance tax payable by him under section 210 has been computed, or (b) for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income (which shall be estimated by the assessee) exceeds, and (3) such amount of tax exceeds by 20 per cent. the amount of advance tax demanded from him under section 210. The question, therefore, to be decided is whether the assessed ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 212 of the Act. Here, the difference between the two taxes, that is advance tax paid and the tax to be paid on the revised income is only Rs. 98,918 which is less than 20 per cent. of the tax payable on revised income. The question is whether, for the purpose of breach of section 212, the income assessed by the Income-tax Officer on the return filed by the petitioner No. 1 company is to be considered or whether the assessment in appeal against the order of the Income-tax Officer by the Income-tax Appellate Tribunal is to be considered. In my opinion, the principle of merger will apply. The order of the Income-tax Officer has merged with the order of the Appellate Tribunal and the order passed therein is to be acted upon for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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