https://www.taxtmi.com/caselaws?id=37224 Penalty under the advance-tax scheme applies only where the assessee, at the time of filing the estimate, knew or had reason to believe that the estimate was untrue. An estimate based on then-available trial balance and business results is not rendered false merely because the year later ends in profit. Where the assessee discloses the material used for the estimate, the revenue must prove that profit could reasonably have been foreseen or that the estimate was otherwise knowingly inaccurate. Penal provisions are to be strictly construed, and later events matter only if they were reasonably foreseeable when the estimate was made. en-us Thu, 08 Feb 1979 00:00:00 +0530 Sat, 27 Mar 2010 15:24:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37224 Penalty under the advance-tax scheme applies only where the assessee, at the time of filing the estimate, knew or had reason to believe that the estimate was untrue. An estimate based on then-available trial balance and business results is not rendered false merely because the year later ends in profit. Where the assessee discloses the material used for the estimate, the revenue must prove that profit could reasonably have been foreseen or that the estimate was otherwise knowingly inaccurate. Penal provisions are to be strictly construed, and later events matter only if they were reasonably foreseeable when the estimate was made. Case-Laws Income Tax Thu, 08 Feb 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37224