1981 (5) TMI 37

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....the IT Act, 1961. 2. Facts which give rise to the controversy are given in para 1 of the order of CIT, a part of which is excerpted below: "The records would show that the ITO issued advance-tax notice for an amount of Rs. 4,760 against which the appellant filed an estimate of Rs. 1,460 on 14th Sept., 1976 and paid Rs. 487 on 14th Sept., 1976 and another Rs. 487 on 14th Dec., 1976. However, ....

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....or under cl.(b) of s. 216 he had proceeded to charge interest. In this respect he cited the case of Addl. CIT vs. Vazir Sultan Tobacco Co. Pvt. Ltd. (1980) 122 ITR 251 (A P) and that of CIT vs. Elgin Mills (1980) 123 ITR 712 (All) to stress that ITO did not record a finding that the assessee under-estimated the advance tax payable. His order being non-speaking it was not possible to find out why i....

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....(b) refers to deferring of payment of advance tax. In clause (a) there may not be deferring of any understatement of advance tax payable determined on the basis of understated estimate. In (b) there may not be under-statement of advance tax payable but the instalment due being deferred may not have been paid. The contingencies set out in two clauses(a) and (b) being different, the ITO was obliged ....

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....te of the firm's advance tax estimate. That being so it is difficult to resist the suggestion that the ratio of CIT vs. Pratap Chand Maheshwari(1980) 14 CTR (P&H) 410: (1980) 124 ITR 653 (P&H) applied to the facts of the situation. If the assessee had caused his estimate to be based on the estimate of the firm, the individual could not be held liable for understating income. We find further suppor....