1993 (10) TMI 32

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....er section 273(a) of the Income-tax Act in the case of the assessee for the assessment year 1975-76 and cancelling the penalty of Rs. 2,557?" The brief facts of the case are that the assessee is a limited company and in respect of the assessment year 1975-76 which is the first assessment year the accounting period ended on May 31, 1974. A notice was issued to the assessee under section 139(2) of the Income-tax Act, 1961, for furnishing the return for the assessment year 1974-75. The return was filed, declaring nil income, which was accepted by the Income-tax Officer and the order to this effect was passed on September 13, 1974. An estimate was filed of advance tax on December 13, 1974, suo motu. The provisions of section 212(3) requir....

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.... had himself submitted that there is no liability to file the return, no assessment could have been made and, therefore, the estimate of the advance tax, which was filed by the assessee cannot be ignored. The order passed by the Income-tax Officer was upheld. In second appeal preferred before the Income-tax Appellate Tribunal, it was observed that, since the assessee was assessed for the assessment year 1974-75, a notice under section 210 was required to be issued by the Income-tax Officer to the assessee to make payment of advance tax. An assessee which was already assessed was not required to file an estimate. The estimate which was filed cannot be said to be untrue or false as it was not a valid estimate in the eyes of law. The decisi....