KALURAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application by the assessee under Section 256(2) of the I.T. Act, 1961, praying that the Income-tax Appellate Tribunal, Indore, be directed to state the case and refer to this court questions of law said to be arising out of the Tribunal's order dated September 7, 1976, passed under Section 254(2) of the I.T. Act, 1961, partly rectifying their earlier order.

(2.) THE assessee-applicant was assessed to income-tax in the status of, "individual" for the assessment year 1971-72. THE assessee had not furnished an estimate of advance tax in accordance with Section 212(3) of the I.T. Act. THE ITO initiated penalty proceedings under Section 273(b) of the Act. In response to the notice issued by the ITO as to why penalty be not levied, the assessee pleaded that he had not committed any default as he had paid the advance tax. THE ITO, on the basis of the record, found that the advance tax had not been paid and, therefore, levied penalty.

(3.) THE Appellate Tribunal, vide its order dated April 24, 1976, dismissed the appeal. THE contention raised by the assessee's counsel before the Appellate Tribunal on this issue was that "the assessee had returned an income of only Rs. 902 in the assessment year in question and that he was under a bona fide belief that his income was below the taxable limit and as such he did not file the estimate of advance tax". (See para. 5 of the Appellate Tribunal's order). This submission was made to show that there was reason on the part of the assessee in not furnishing the estimate of advance tax in accordance with Section 212(3) of the Act, This contention was rejected on the ground that, firstly, no such plea was taken before the ITO or AAC, and, secondly, according to the Tribunal there could not be any honest belief by the assessee about his return of income, because finally he was assessed on an income of Rs. 85,460.