Law: Income Tax Act, 1961

Section: 216,256,256(2)

Income-tax--Advance tax---Underestimate of advance tax---Levy of interest--Finding regarding underestimate based on sales figures---Sales figures not supporting finding---No material to support Tribunal's finding---Tribunal was not justified m holding that there had been an underestimate of advance tax--­Indian Income Tax Act. 1961, S.216. (b) Income-tax--- Reference----Question of fact or law---Question whether there was any material to support finding of Tribunal is a question of law---Indian Income Tax Act, 1961, S.256(2). The question as to whether there was any material at all for a particular finding b) a Court or a, Tribunal is a question of law. Held, 'per A.K. Patnaik, B.N Singh and S.L. Saraf JJ. (D.N Baruah, J. dissenting), that the only materials on which the Tribunal had­ relied for coming to the conclusion that the assessee had underestimated the advance tax payable and thereby reduced the amount payable in instalments for the year relevant to the assessment year 1975-76 were the sales figures of the assessee during the years 1973-74 and 1974-75 and the said sales figures did not support the finding of the Tribunal. The sales of the assessee during the year 1974-75 up to August, 1974, exceeded the sales of the assessee during the year 1973-74 up to August, 1973, only by Rs.15,82,000 and odd The assessee returned an income of Rs.12,83,459 for the assessment year 1974-75. Since the difference in the sales during the year 1973-74 up to August, 1973, and during the year 1974-75 up to August, 1974, was Rs.15,82,000 and odd, the assessee fled the estimate of its income on September 5, 1974, at Rs.15,00,000 which was more than Rs.2,00,000 than the returned income of Rs.12,83,459 for the assessment year 1974-75., there was, therefore, no material whatsoever before the Tribunal to hold that the assessee had underestimated its income in the estimate filed on September 5, 1974. The aforesaid sales figures relied on by the Tribunal in its order further showed that the sales of the assessee during the year 1974-75 up to December, 1974 had exceeded the corresponding sales of the assessee during the year 1973-74 up to December, 1973, by Rs.10,20,098. Thus, the…

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