COMMISSIONER OF INCOME TAX Vs. ROSHANLAL

JUDGEMENT

(1.) THIS is an application under Section 256(1) of the Income-tax Act, 1961 (in short "the Act"), filed by the Revenue, wherein it has been prayed that the following question of law arises in the case and the Income-tax Appellate Tribunal be directed to draw up a statement of case :

(2.) NOTICE of demand for payment of advance tax of Rs. 31,466 was issued to the assessee. The assessee filed a return declaring an income of Rs. 2,36,280 and the assessment was completed on an income of Rs. 2,76,600 (after appeal effect). The tax on the income comes to Rs. 1,89,585. Since the tax levied on the basis of the returned income exceeded the tax demanded by 1/3rd of the latter amount, the assessee was required to file an estimate and pay advance tax and a notice under Section 274 of the Act requesting the assessee to show cause as to why penalty should not be imposed, was issued and served on the assessee. A fresh opportunity was also offered and the assessee in his reply furnished the following explanation :