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Judgment
R. P. GARG, A. M. :
This is an appeal by the Revenue against the order of the CIT(A), cancelling the penalty levied by the Assessing Officer under s. 273(a) of the IT Act, 1961, for the asst. yr. 1983-84.
Advance estimate was filed in this case on 22nd Sept., 1982 and 11th March, 1983 and payments were made in accordance therewith. The assessment was completed on a higher income. The difference was attributed by the assessee to the demand made by the Union on 6th March, 1982 led by Dr. Datta Samant, President, Maharashtra General Kamgar Union, demanding a substantial wage hike w.e.f. 1st April, 1982. Labouring under this threat, the assessee apprehended that it would be saddled with heavy burden of liability, reducing its profit and this led it to file a lower estimate of advance tax. The matter was finally referred to arbitration and resulted in an amicable settlement on 14th Nov., 1983, whereby the union agreed not to press retrospective effect to their demand and the additional wage liability was only to be prospective. These circumstances led the assessee to under-estimate its income for the purposes of payment of advance tax. This, in our opinion, was a reasonable cause, and the CIT(A), therefore, was justified in deleting the levy. We sustain his order.
The appeal is dismissed.