Law:

Section:

SECTION 212(3A) OF THE INCOME-TAX ACT, 1961 - ADVANCE TAX - ESTIMATE OF - WHETHER EVEN IF AN ESTIMATE IS FILED UNDER SECTION 212(1), THERE IS STILL AN OBLIGATION ON PART OF ASSESSES TO SUBMIT AN ESTIMATE UNDER SECTION 212(3A) IF ADVANCE TAX PAYABLE ON CURRENT INCOME EXCEEDS AMOUNT OF ADVANCE TAX DEMANDED FROM ASSESSEE, UNDER SECTION 210, BY MORE THAN 33 â…“ PER CENT - HELD, YES Facts For the relevant assessment year, the ITO raised an advance tax demand, from the assessee-firm under section 210, based on the then latest completed assessment which showed a total income of Rs. 2,13,750. Without complying with the said demand, the assessee sent an estimate under section 212(1) estimating its total income at Rs. 1,16,000. Thereafter, the assessee filed its returns for the assessment year under consideration showing an income of Rs. 2,67,935. However, the assessment was completed on a total income of Rs. 5,87,200. The ITO thereafter initiated penalty proceedings for the assessee's failure to file an estimate in accordance with section 212(3A) and levied penalty under section 273(e ). On appeal, the AAC accepted the assessee's contention that as it had filed an estimate of advance tax under section 212(1), there was no obligation on its part to make an estimate under section 212(3A) and, therefore, the penalty under section 273(c) was not sustainable. On appeal by the revenue, the Tribunal, however, held that wherever the tax on an assessee's current income on which advance tax was payable exceeded by 33â…“ per cent of the demand raised by the ITO, there was an obligation to file an estimate under section 212(3A) and the failure to do so attracts the provisions of section 273(c). The Tribunal, therefore, set aside the AAC's order and upheld the ITO's order. On reference: Held Section 212(3A) requires the assessee, on whom a notice has been issued under section 210, to make en upward revision of the tax if the tax on current income exceeds the advance tax demanded by 33 â…“ per cent. There is nothing in section 212(3A) to indicate that this should be exercised only as soon as the receipt of a demand under section 210 and not on any later occasion. It is no doubt true…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492