https://www.taxtmi.com/caselaws?id=64229 Penalty under section 273(a) requires proof that the advance-tax estimate was untrue to the assessee's knowledge or belief; mere inaccuracy is not enough. An honest attempt to estimate income, supported by available records and a reasonable averaging method adopted before year-end figures were available, does not by itself establish contumacious conduct. Prior underestimation may be relevant in a proper case, but it cannot alone prove liability for the current year. On the stated facts, the estimate was not shown to be knowingly false, so the penalty was not sustainable. en-us Fri, 03 Jul 1992 00:00:00 +0530 Sat, 05 Feb 2011 15:37:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64229 Penalty under section 273(a) requires proof that the advance-tax estimate was untrue to the assessee's knowledge or belief; mere inaccuracy is not enough. An honest attempt to estimate income, supported by available records and a reasonable averaging method adopted before year-end figures were available, does not by itself establish contumacious conduct. Prior underestimation may be relevant in a proper case, but it cannot alone prove liability for the current year. On the stated facts, the estimate was not shown to be knowingly false, so the penalty was not sustainable. Case-Laws Income Tax Fri, 03 Jul 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64229