Section 273

False estimate of or failure to pay advance tax

273. If the Income-tax Officer, in the course of any proceedings in connection with the regular assessment, is satisfied that any assessee—

(a) has furnished under section 212 an estimate of the advance tax payable by him which he knew or had reason to believe to be untrue, or

(b) has without reasonable cause failed to furnish an estimate of the advance tax payable by him in accordance with the provisions of sub-section (3) of section 212,

he may direct that such person shall, in addition to the amount of tax if any, payable by him, pay by way of penalty a sum—

(i) which, in the case referred to in clause (a), shall not be less than ten per cent but shall not exceed one and a half times the amount by which the tax actually paid during the financial year immediately preceding the assessment year under the provisions of Chapter XVII-C falls short of—

(1) seventy-five per cent of the tax determined on regular assessment, as modified under the provisions of section 215, or

(2) where a notice under section 210 was issued to the assessee, the amount payable thereunder,

whichever is less; and

(ii) which, in the case referred to in clause (b), shall not be less than ten per cent but shall not exceed one and a half times the amount on which interest is payable under section 217.

 

 

[As amended by the Finance Act, 1962]