1989 (3) TMI 14

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....e estimate of advance tax payable furnished by the assessee on September 15, 1969, under section 212 of the Income-tax Act, 1961, was not an estimate which the assessee knew or had reason to believe to be untrue ? (2) Whether, on the facts and in the circumstances of the case and having regard to the finding of the Tribunal that the assessee had already come to know about the upward revision of the price of the products and in view of the fact that the assessee itself made a sale on March 12, 1970, of its products at the revised higher price, the Tribunal had no evidence or had relied on irrelevant materials to hold that the revised estimate of advance tax payable furnished by the assessee under section 212 of the Income-tax Act, 1961, on ....

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....on on February 28, 1970, in which the rise in price was decided. The Income-tax Officer did not accept the explanation of the assessee as, according to him, the rise in price was known to the assessee through its officer who attended the meeting on February 28, 1970, of the association. The assessee later on took another plea that the assessee was to receive a large subsidy from the Government but the Government refused to accept the liability and that had the effect of nullifying the excess profits received by the assessee by the rise in price and that this fact was also taken into consideration in preparing the final estimate of advance tax. The Income-tax Officer was of the view that this explanation was an afterthought. He held that the....