1. The following question was referred by the Tribunal for the opinion of the High Court:
“Whether on the facts and in the circumstances of the case, the Tribunal erred in law in holding that Rs 1,83,000 paid by the assessee on 26-3-1965 should be treated as valid advance tax and should be deducted from 75% of the tax determined for arriving at the basis for imposing the penalty under Section 273(b) of the Income Tax Act, 1961?”
2. We have heard Mr B.B Ahuja, learned counsel for the Revenue. He has taken us through the judgment of the High Court and various other documents on the record.
3. The High Court, in a detailed discussion of various provisions of the Income Tax Act, has come to the conclusion that the assessee was entitled to claim the deduction of payment of tax of Rs 1,83,000 made on 26-3-1965 for arriving at the basis for imposing penalty. The question was answered in the negative and against the Revenue. We agree with the reasoning and the conclusion reached by the High Court.
4. The appeal is, therefore, dismissed with no order as to costs.