Law: Income Tax Act, 1961

Section: 256,273,273(2)(a)

Income-tax---Reference---Advance tax---Penalty---Estimate of income lower than annual income---Finding by Tribunal that estimate was based on hones belief pursuant to position in law as understood at that time---Tribunal was justified in cancelling penalty---No question of law arose---Indian Income Tax Act, 1961, Ss.256 & 273. Held, that the Tribunal had found on the facts that the figure submitted by the assessee were on an honest belief of the estimate made by it pursuant to the position in law as it was understood at that time by the decisions of the Court. Hence, the fact that the estimated income returned by the assessee for the purpose of advance tax was less than the annual income would not bring the assessee within the ambit of section 273(2)(a) of the Income Tax Act, 1961. The view expressed by the Tribunal on such factual conclusions is unassailable and the High court did not commit any error in refusing to call for a reference. THIS JUDGMENT DELIVERED BY The Revenue is aggrieved by the judgment of the High Court which confirmed the view taken by the Tribunal in this matter. The only question that was sought to be referred to the High Court by the Reveriue was as follows: "Whether when the Assessing Officer as well as the Commissioner of Income-tax (Appeals) had given a categorical finding that the assessee had acted in conscious "disregard of its statutory obligation with a view to reduce the quantum of its…

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