Advance-tax estimate penalty not leviable where income was indeterminate and the filing date fell within holiday time rules.

Penalty under section 273(c) was not exigible where the assessee could not file a further advance-tax estimate under section 212(3A) because the relevant share income from firms was not ascertainable by the statutory date. The estimate furnished on 15 December 1975 was treated as within time by applying section 10 of the General Clauses Act, as the intervening days were closed holidays. On those facts, the assessee had reasonable cause for not furnishing another estimate, and the earlier estimate was accepted as a reasonable estimate in the circumstances.

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Issues: Whether penalty under section 273(c) of the Income-tax Act, 1961 was exigible for failure to file an estimate of advance tax under section 212(3A) of the Income-tax Act, 1961, and whether the estimate furnished on 15 December 1975 was in time and constituted a reasonable estimate.

Analysis: The assessee's income was largely made up of share income from firms whose accounts were not complete by the statutory date, so the exact share income could not be ascertained in time for filing the estimate. The estimate filed on 15 December 1975 was treated as within time by applying section 10 of the General Clauses Act, 1877 because the intervening days were closed holidays. On these facts, the assessee had a reasonable cause for not filing a further estimate under section 212(3A), and the earlier estimate was regarded as a reasonable estimate in the circumstances.

Conclusion: Penalty under section 273(c) of the Income-tax Act, 1961 was not leviable and the appeal succeeded in favour of the assessee.

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