1992 (9) TMI 147

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....imate. On 15-12-1981, it filed another estimate, revising its income upwards to Rs. 85,000. On the basis of this estimate also, admittedly, no tax was paid. It was only while filing its return of income that it paid self-assessment tax under section 140A of the Act. The assessment was completed on a total income of Rs. 88,740. 3. In the course of the assessment proceedings, the Income-tax Officer called upon the assessee to show cause why penalty under section 273(1)(b) could not be levied for not furnishing an estimate of income for purposes of advance tax in accordance with the provisions of section 209A. The assessee's response was that penalty under the said section could be levied only in cases where the assessee failed to furnish e....

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.... by it in advance. 7. Secondly, section 273(1)(b) is specifically directed towards cases in which the assessee has, without reasonable cause, failed to file a statement of the advance tax payable by him in accordance with the provisions of section 209A(1)(a) of the Act. The assessee having filed an estimate in lieu of the statement, there was no question of invoking the provisions of section 273(1)(b). True, the assessee had not paid advance tax in accordance with the two estimates filed by it. Even so, for this default, the assessee cannot be penalised under section 273(1)(b). 8. In view of the foregoing, therefore, contended Shri Devanathan, the assessee is entitled to succeed. 9. On his part, Shri Sankaralingam, the learned Depa....

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....ion to the word " collection ", and in the context of default on the part of the assessee or any other person to pay tax suo motu within the time allowed under the Act. Thus, whereas 'collection' signifies voluntary payment of tax, 'recovery' connotes collection of tax by the Department through coercive steps. 12. The provisions relating to payment of tax in advance have been collected under the heading 'C. ---Advance Payment of tax'. Here, section 218 is designed to deal with cases of default in matters relating to advance payment of tax. If an assessee fails to pay any instalment(s) by the date(s) specified, section 218 steps in and deems him " to be an assessee in default in respect of such instalment or instalments ". Once section 21....