Advance tax estimate penalty fails where share income could not be ascertained in time and actual income was not reasonably predictable.

Penalty for failure to file an advance tax estimate was not leviable where the assessee could not ascertain her share income from a firm in time. The firm had filed its return late and its books were not closed until much later, so there was no material to show that the assessee could have reasonably anticipated her actual income for a proper estimate under section 212(3A). On that factual basis, the ingredients for penalty under section 273(c) were not established, and the penalty was cancelled by the ITAT Madras.

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Issues: Whether penalty under section 273(c) of the Income-tax Act, 1961 was leviable for failure to file an estimate of advance tax under section 212(3A) when the assessee could not ascertain her share income in time.

Analysis: The assessee had derived a substantial part of her income as share income from a firm, and the firm itself had filed its return late. The books of the firm were not closed until much later, and the assessee's explanation that the correct profits could not be known in time was accepted. In these circumstances, there was no material to show that the assessee could have anticipated her actual income so as to file a proper estimate of advance tax. The factual basis for penalty under section 273(c) was therefore not made out.

Conclusion: The penalty was not justified and was cancelled.

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