1982 (12) TMI 57

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....-77. 2. The assessee is an individual. He was served with a notice u/s. 210 requiring him to pay an advance-tax of Rs. 37,075 in three instalments during the financial year 1975-76, relevant for the asst. yr. 1976-77. The assessee paid two instalment of Rs. 12,353 each on 13th September, 1975 and 13th December, 1975. On 15th March, 1976, the assessee filed an estimate of advance-tax u/s. 212(3A) of the Act, showing an amount of Rs. 45,859 as the advance-tax payable. Deducting the amount of advance-tax already paid, the assessee tendered the balance amount by means of a cheque on 15th March, 1976 which was, however cleared in the Reserve Bank on 18th March, 1976. The ITO came to hold the view that the assessee did not file an estimate of ....

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....found merit in the assessee's contention. On a reference to the language of s. 212(3A), the CIT(A) found that all the assessee was required to do was to send the voluntary estimate of the advance-tax to the ITO and pay the tax thereon. As the assessee had sent the estimate and also paid the cheque on 15th March, 1976, which was the last day prescribed under the law, the CIT(A) came to the conclusion that the penalty imposed by the ITO was not justified. Hence, he cancelled the penalty. 4. Shri S. Krishnan, the ld. representative for the department, urged before us that the CIT(A) has erred in his decision. He contended that s. 212(3A) requires an assessee to file a voluntary estimate of the advance-tax payable by him, if and only if, the....

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....d the estimate within the preseribed date, when the assessee has, in fact, done so. He pointed out that the last date for filing the estimate was 15th March, 1976 and the estimate has been filed on the very same date. Again, the cheque for the additional tax estimated as payable by the assessee was also handed over on 15th March, 1976. He also urged that there was a mistake in the amount of penalty as calculated by the ITO inasmuch as the penalty impossible worked out to a much lower figure. 6. We have considered the contentions of both the parties, as well as the facts on record. We find that a penalty u/s. 273(c) can be levied for a default u/s. 212(3A) of the Act, which requires the assessee to file on estimate of the advance-tax paya....