Advance tax estimate penalty was unsustainable where section 209A was not operative and no section 210 notice had been issued.

Penalty for failure to furnish an advance tax estimate was held inapplicable because section 209A was not yet in force for the relevant assessment year. Under the law then prevailing, an assessee already subjected to regular assessment had no obligation to file a voluntary estimate unless a notice under section 210 was issued. As no such notice was issued and the assessee had been previously assessed, there was no statutory default and the penalty under section 273(1)(b) was cancelled.

---

---

Issues: Whether penalty under section 273(1)(b) of the Income-tax Act, 1961 was leviable for failure to furnish an estimate of advance tax when section 209A was not in force for the relevant assessment year and no notice under section 210 had been issued.

Analysis: Section 209A came into force only with effect from 1 June 1978 and was therefore not applicable to the assessment year in question. On the law then prevailing, a person already assessed by regular assessment was not obliged to file a voluntary estimate of advance tax; the obligation in such a case rested on the issue of notice under section 210 by the Income-tax Officer. Since the assessee had already been assessed in an earlier year and no notice under section 210 was issued, there was no statutory default attracting penalty.

Conclusion: The penalty was not sustainable and was cancelled in favour of the assessee.

---