Advance-tax estimate proof in penalty cases: bare acknowledgement was insufficient, but penalty was confined to the minimum.

Penalty under section 273(c) remained sustainable where the assessee failed to produce conclusive evidence that the advance-tax estimate had been filed; mere possession of an acknowledgement not showing the relevant year was not sufficient proof of compliance under section 212(3A). On that basis, the confirmation of penalty could not be disturbed. However, the alternative plea for reduction was examined on the facts, and the penalty was ultimately restricted to the minimum, giving the assessee partial relief.

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Issues: Whether the penalty levied under section 273(c) of the Income-tax Act, 1961 was liable to be sustained in full or restricted to the minimum in the absence of conclusive evidence that the assessee had filed the advance-tax estimate claimed by him.

Analysis: The earlier finding that mere possession of an acknowledgement not showing the relevant year was not proof of compliance under section 212(3A) was treated as binding. As no conclusive evidence was produced to establish filing of the estimate, the confirmation of penalty could not be disturbed on that ground. The alternative plea for reduction was however considered on the facts of the case.

Conclusion: The penalty under section 273(c) was upheld in principle, but it was restricted to the minimum, resulting in partial relief to the assessee.

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