1982 (3) TMI 121

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....al is in respect of penalty amounting to Rs. 550 levied by the ITO under section 273(1)(b)(ii) of the Income-tax Act, 1961 ("the Act"), and confirmed by the AAC in the assessee's first appeal before him for default of the assessee under section 209A(1)(a) of the Act. The assessment year involved is 1979-80. 2. The facts pertaining to the issue are in short compass. The appellant was an old asse....

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....ion of the AAC which is contested by the assessee before us. The learned counsel for the assessee, Shri D.S. Gupta, after reading out section 209A submitted that it is not obligatory in all cases to warrant filing of estimate of advance tax up to the date of first instalment due for advance tax. He also submitted that the assessee had come forward with an explanation before the ITO which though fi....

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....owing a total income of about Rs. 85,000 whereas limit provided under section 208 for registered firm, which the assessee was, is only Rs. 20,000 and on that basis it cannot be said that the assessee had any case and it was not under the bona fide belief that the estimate was not filed up to the due date of first instalment. 6. After taking into consideration the rival submissions and perusing ....

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....isions. The proceedings have been started by mistake. It is, therefore, requested that proceedings started under the said provisions may kindly be dropped." We do not find that the ITO gave any opportunity further to the assessee to substantiate its contention pertaining to bona fide belief that at the time of first instalment its current income was likely to be below taxable limit. Perusal of ....