1992 (6) TMI 65

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....y the assessee where under the income was estimated at Rs. 1,47,000. The assessee however, deposited this amount within the previous year ending on31-3-1979. For assessment year 1982-83 the assessee was required to deposit a sum of Rs. 37,209 on or before15-3-1982under the CDS, 1974 on the estimated income of Rs. 2,37,222. However, the assessee deposited an amount of Rs. 31,650 on31-3-1982. Therefore, there was a short-fall of Rs. 5,559 in the deposit under the CDS. This payment was late by 15 days. 3. In the case of Smt. Kala Vachani, the assessee was required to deposit a sum of Rs. 26,617 on or before 15-3-1982 under the Compulsory Deposit Scheme, 1974 on the basis of estimate filed by the assessee where under the income was estimated a....

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....by the every member of the Vachani group.There was no mens rea involved and the assessee had the intention as well as the funds to make necessary deposits under the CDS Act. But due to the wrong advice of the Chartered Accountant, the default has been committed. Therefore, it is a reasonable cause. The penalties should be deleted. The CIT (Appeals) deleted penalty of Rs. 4,537 for assessment year 1979-80 in the case of Smt. Satti S. Vachani and in assessment year 1982-83 he upheld the penalty of Rs. 1,389 conceded by the assessee, thereby deleted Rs. 7,913. In the case of Smt. Kala Vachani he sustained penalty of Rs. 954 conceded by the assessee and deleted the penalty of Rs. 5,700 on the basis that there is a reasonable case where the asse....

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....s made after the due date but within the financial year, the advance tax paid is held in accordance with the provisions of sections 211 and 212, reliance was placed on the decision in the case of Bharat Textile Works and the Supreme Court decision in the case of CIT v. Kohinoor Flour Mills (P.) Ltd. [1991] 187 ITR 585 and on the decision of Delhi High Court in the case of Bharat Commerce & Industries Ltd. v. Union of India [1991] 188 ITR 277. Our attention was also invited to the Notification No. GSR 463 (E) datedNovember 12, 1974. 6. We have considered the rival submissions. The assessees were required to make deposit under the CDS under the provisions of section 3. Section 3 of Compulsory Deposit (Income-tax Payers) Scheme, 1974 is enume....

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....0th, December 31st and March 31st in any financial year. Similarly provisions of section 5 of CDS Act, 1974 prescribed the time for making compulsory deposit as under :---- " 5. Time for making compulsory deposit : A depositor shall make the compulsory deposit for an assessment year referred to in sub-section (1) of section 3 ; (a) in case where such depositor is required to pay advance tax under the Income-tax Act in the financial year immediately preceding that assessment year at any time (in one sum or in instalments of his choice) before the expiry of the date on which the last instalment of advance tax is payable by him in accordance with the provisions of (section 211 or sub-section (4) of section 209A) or, as the case maybe, sub-s....