In Punjab Tractors Ltd. v. Asstt. CIT (2004) 137TAX211 the assessing officer demanded advance tax on the basis regularly assessed income for the assessment year 2000-01 as per the provisions of section 210(3). Since the assessee was of the view that in the estimate the advance tax payable on its current income during the current financial year would be less, it exercised its right under section 210(5) by filing an estimate of income in Form No. 28A. When the assessing officer rejected such estimate of the assessee the P& H High Court had to intervene by stating that the assessee’s liability to pay advance tax is only viz a viz his estimate filed in Form 28A.
However care must be exercised by assessees in every such case to file such estimate in Form 28A by the due date for any failure in this regard will prompt the assessing officer to make legally permissible coercive recovery under the law.