1979 (7) TMI 113

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....stimated the advance-tax payable by it at Rs. 3,04,500. The assessee, however, did not make the payment of advance-tax in accordance with the said estimate and by its letter dt. 11th Dec., 1975 addressed to the CIT explained its difficulties in making the payment. It was explained that it did not have liquid cash and as such was not in a position to pay advance-tax. It was further explained that it was carrying on business as contractor and according to the terms of agreement with National Dairy Development Board, Anand, the payment due to it were retained as deposits. The assessee also approached the CBDT explaining the reason why the advance-tax could not be paid. However, as soon as sufficient funds were available to the assessee it made....

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....vailable to it. It was, therefore, urged that the assessee did not act in defiance of law so as to visit with the penal consequences. The ld. Departmental Representative on the other hand, relying on the orders of the authorities below urged before us that the assessee has admitted its default in not making the payment of advance-tax in time. Therefore, a token penalty as imposed by the ITO was fully justified. 5. We have carefully considered the rival submissions. It is true it is obligatory on part of the assessee to make the payment of advance-tax on due dates as specified in s. 211 of the Act. But the point at issue is whether the assessee should be visited with the penal consequences in view of the peculiar circumstances which obtai....