9911796707
TMI Blog1981 (2) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 210(1) of the IT Act, 1961 dt 26th April, 1973 was served on the assessee wherein it was indicated that the said notice was being issued on the basis of the last assessed income of Rs. 26,780 for the asst. yr. 1972-73 and that tax payable thereon was Rs.. 5,419. The assessee filed his own estimate of advanced tax on 14th Dec., 1973 showing income of Rs. 12,200 as follows: . Rs. 1. 1/6th share in M/s. Bhargava Book Depot 7,800 2. 1/3 rd share in M/s Bhargava Offsets. 16,667 3. 1/2 share in M/s Banaras Engravers (Loss) (-) 12,267 . 12,200 As the assessee had already paid Rs. 1,806 by way of advance-tax on 4th Jan., 1973 in terms of the notice under s. 210 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt as above, the relief asked for under s. 80QQ was not granted to M/s. Bhargava Book Depot and, therefore, the income of the assessee correspondingly increased. 6. As the assessment had been completed by the ITO at Rs. 46,684, he issued a penalty notice to the assessee in terms of cl. (a) of s. 273 of the IT Act, 1961 on the ground that he had filed an estimate of advance tax, which he had reasons to believe to be untrue or, in any case, not to be true. Apparently, the assessee did not reply to the aforesaid show cause notice. The ITO took an advance inference against him and imposed the impugned penalty of Rs. 1,900. 7. On appeal before the AAC, the assessee, inter alia, raised the question of his bona fide belief with regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamine the entire matter on merits. The estimate of the assessee would not be found to be far too removed from reality if once that plea of the assessee is accepted. In any case so long as the assessee held the bona fide belief with regard thereto he had no option in the matter but to go by what his belief about his current income was. He could not have anticipated at that time that his claim, which he felt was genuine would be rejected. 9. The ld. counsel for the assessee also pointed out to us that the notice under s. 210, which was originally issued by the ITO was entirely wrong inasmuch as it purported to be based on the last assessed total income of the asst. yr. 1972-73, but the assessment for that year had not been completed by Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 212(1) of the IT Act, 1961 on 14th Dec., 1973 was based on bona fide belief. The assessee has worked out his principal share income from the various firms and while working it out he had taken note of the claim under s. 80QQ which according to him M/s. Bhargava Book Depot was entitled to put in. The belief with regard to the availability of the relief under s. 80QQ was not held without any basis and as such the mere fact that ultimately it was not admitted by the ld. CIT(A) would not make the assessee's state of mint at the time when he filed his estimate of income as being without any basis. Before penalty under s. 273 (a) can be imposed on an assessee, we have to see whether there was any reasonable cause for him to have acted i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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