Law:

Section:

Section 216 of the income-tax act, 1961 Interest Payable by assessee in case of underestimate, etc. Assessee initially filed estimate for payment of advance tax according to its book results and subsequently filed revised estimates showing enhanced income Assessable income so determined exceeded income estimated Whether interest chargeable for underestimated income Held, on facts, no Facts The accounting periods of the assessee-company for the assessment years 1967-68 and 1968-69 ended on 30-09-1966 and 30-09-1967, respectively. It changed its accounting year to calendar year for and from the assessment year 1969-70 so that the assessment period for the year was fifteen months. The ITO issued notices for payment of advance tax for the assessment years 1967-68 and 1968-69 payable in equal quarterly instalments on 1st December and 1st March of relevant financial years. The assessee filed estimates in May 1966, and May 1967, respectively, for these two years on the basis of its books of account and paid the first three instalments accordingly. In February 1967 and February 1968, it filed revised estimates for these two years showing much higher income and the shortfall in advance tax paid was made good in the last instalment. For each of the next two assessment years 1969-70 and 1970-71, the ITO made advance tax demands payable in four equal instalments though in view of the amendment made in section 211 by the Finance Act, 1969 (with effect from 1-04-1969), the advance tax was payable in three equal instalments on 15th June, 15th September and 15th December as assessee's previous year ended on 31st December. The assessee filed its estimate for the assessment year 1969-70 in May 1968, showing advance tax payable at nil, and for the assessment year 1970-71 in May 1969, showing an income of Rs. 21,00,000, and paid first three instalments accordingly. For the assessment year 1969-70, the assessee filed a revised estimate on 20-11-1968 showing an income of Rs. 23,50,000 and paid the entire tax in the last instalment. Similarly, for the assessment year 1970-71, revised estimate of Rs. 33,00,000 was filed in February 1970 and the shortfall in tax paid was made good in…

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