9911796707
TMI Blog1983 (9) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... gular assessment for the assessment year commencing on the 1st day of April, 1970, or any subsequent assessment year, is satisfied that any assessee --- (a) and (b) (c) has without reasonable cause failed to furnish an estimate of the advance tax payable by him in accordance with the provisions of sub-section (3A) 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 --- (i) and (ii) . . . (iii) which, in the case referred to in clause (c), shall not be less than ten per cent but shall not exceed one and a half times the amount by which the tax payable under the notice issued to the assessee under section 210 falls short of seventy-five per cent of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to be greater than the income on which the advance tax payable by him under section 210 has been computed or for any other reason, the amount of advance tax computed . . . on the current income . . . exceeds the amount of advance tax demanded from him under section 210 by more than 33 1/3 per cent of the latter amount, he shall at any time before the date on which the last instalment of advance tax is due from him, send to the Income-tax Officer an estimate of --- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate . . . ." The reading of the aforesaid provisions of sub-section (3A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he had filed an estimate of advance tax in terms of sub-section (3A) of section 212, though it was not available on record. It is common ground that there was such a responsibility on the assessee and that he has not complied with the requirement of section 212. Despite it, the defence of the assessee against the show cause notice of the ITO for imposing penalty, as stated before the Commissioner (Appeals), was that the said default should not be penalised (1) because the assessee had paid the advance tax to the extent of Rs. 90,000 as against the tax of Rs. 21,920 only demanded of him by the ITO under section 210 of the Act, and (2) if the provisions of section 64 of the Act, as amended by the Taxation Laws (Amendment) Act, 1975 with effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explanation for it and, therefore, the imposition of penalty on the assessee was justified. On behalf of the assessee, reliance was placed on the order of the Commissioner (Appeals) and that of the Tribunal mentioned in the order of the Commissioner (Appeals). It is also the contention of the learned counsel for the assessee that, if the provisions of section 64, as amended by the Taxation Laws (Amendment) Act, 1975 were ignored, the tax paid by the assessee was enough to meet the requirement of payment of advance tax. The amendment, in question, was operative only with effect from 1-4-1976 and, therefore, the assessee could not visualize the responsibility under the amended provision and, therefore, he could not make suitable adjustment fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (a) of section 273 itself. The said clause stipulates that, if the ITO finds an estimate of advance tax filed by the assessee to be untrue, and if he has further reasons to believe that the assessee knew that statement to be untrue at the time when he filed it, the assessee is liable to be penalised in terms of the said clause. If no estimate is filed by an assessee, he would never face the consequences of his action of paying advance tax, in accordance with an estimate, which may not be true. 11. In the case which was before our learned brothers of Indore Bench, it was submitted on behalf of the assessee that an advance tax estimate was sent by him to the ITO, but it was not found on record. The Tribunal regarded the aforesaid submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Taxation Laws (Amendment) Act, 1975 received the President's assent on 7-8-1975 and it made various sections of the said Act applicable from different dates. The provisions pertaining to section 64, as contained in section 13 of the said Act, were made operative from 1-4-1976. The assessee had, therefore, ample notice of the amended provisions of the Act at the time when he paid the advance tax. There appears to be no substance in the assessee's contention that he could not anticipate the amendment to section 64, as it came into operation from 1-4-1976. True, the said section came into operation with effect from 1-4-1976, but the amendment in itself was public knowledge in August 1975, and so the assessee could have paid proper advance ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
