COMMISSIONER OF INCOME TAX Vs. SRIRAM AGRAWAL

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter called "the Act"). The question referred to us for our opinion is :

(2.) THE facts, in brief, are that the assessee filed estimate in terms of Section 212(3A) of the Act. In accordance with that estimate, advance tax of Rs. 12,100 became payable on March 15, 1971. THE advance tax was, however, not paid. On February 16, 1972, the assessee filed regular return and on the basis thereof paid tax of Rs. 18,417. On December 16, 1972, the Income-tax Officer called upon the assessee to show-cause in terms of Section 221 of the Act why penalty be not imposed for non-payment of the balance demand of Rs. 10,438. After cause had been shown, by order dated February 3, 1973, the Income-tax Officer imposed a penalty of Rs. 1,500 for non-payment of the advance tax payable as per his own estimate.

(3.) I should like to make it absolutely clear that even de hors the Explanation, Section 212(3A) fixes the time when a person is a defaulter, i.e., when he has not acted in terms of Section 212(3A). The conclusion is, therefore, inescapable that the assessee had defaulted in payment of advance tax.