Law:

Section:

Section 215 of the Income-tax Act, 1961 - Advance tax - Interest payable by assessee - Assessment year 1987-88 - Assessing Officer charged interest from assessee-company under section 215 - On appeal, Tribunal observed that liability for charging interest under section 215 arose due to addition in total income declared by assessee and due to its acceptance of difference regarding its status - Tribunal was of view that additions made in assessment order by Assessing Officer were highly debatable and same were not foreseen at time of filing an estimate of advance tax - Tribunal further opined that assessee was under a bona fide belief that its status was that of a company in which public were substantially interested - Accordingly, Tribunal deleted interest charged under section 215 - Whether since contention of assessee was accepted by Tribunal as well as by instant Court, there was no question of charging interest from it under section 215 - Held, yes K.M. Parikh for the Appellant. R.K. Patel for the Respondent. ORDER K.A. Puj, J. - The revenue has preferred this Tax Appeal against the order passed by the Income-tax Appellate Tribunal for assessment year 1987-88. The appeal was admitted by this Court on 11-2-2002 and the following questions of law were formulated by the Court : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has substantially erred in law and on facts in holding that the assessee-company should be treated as a company where the public is substantially interested and a Public Limited Company ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has substantially erred in law and on facts in deleting the interest charged under section 215 of the Income-tax Act ?" 2. At the time of admission of this appeal, the Court had directed that the appeal is to be heard with Income-tax Reference No. 57/1998 and Tax Appeal No. 241/2000. 3. ITR No. 57/98 is already disposed of by this Court by judgment dated 20-6-2008 and the question as to whether the assessee is a company in which public are substantially interested is decided in favour of the assessee and against…

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