Law:

Section:

Section 217 read with sections 210 and 156 of the Income-tax Act, 1961 – Advance tax – Interest payable by assessee when no estimate made – Whether where order under section 210 and notice pursuant there to were not signed, it must be held that there was no valid order under section 210 and as such there was no obligation to file estimate by assessee and, consequently there could be no liability to pay interest under section 217(1A) – Held, yes FACTS The petitioner challenged the challan which had been issued to him pursuant to the representation made after a notice under section 221(1) was served upon him. HELD The liability to pay interest under sub-section (1A) of section 217 for failure to pay tax on the estimate of enhanced income arises on the making of a valid order under section 210 and the service of the said order upon the assessee. In the instant case, the order under section 210 was not signed. The notice pursuant thereto was also not signed. Therefore, it must be held that there was no valid order under section 210 and as such there was no obligation to file an estimate by the assessee and as such there could be no liability to pay interest under sub-section (1A) of section 217. Note : The case was decided in favour of the assessee. CASE REFERRED TO B.K. Gooyee v. CIT [1966] 62 ITR 109 (Cal.). JUDGMENT Sabyasachi Mukharji, J.—The petitioner in this case challenges the challan which has been issued to him which appears at pages 26 and 27 of the petition for payment of a sum of Rs. 9,735. It appears that the said challan was issued to the petitioner pursuant to the representation made after a notice under section 221(1) of the Income-tax Act, 1961, dated 23rd November, 1974, was served upon him. The petitioner was served with a notice under section 56 of the Income-tax Act, 1961, for payment of advance tax under section 210 of the Income-tax Act, 1961. The said notice, though dated 25th July, 1970, was not signed by the Income-tax Officer and the order under section 210 of the Income-tax Act similarly was not signed by the Income-tax Officer. Section 210 enjoins that where a person has been previously assessed by way of regular assessment the…

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