Law:

Section:

Section 154, read with section 217(1A), of the Income-tax Act, 1961 - Rectification of mistake - Apparent from record - Assessee did not file estimate of Advance tax since he received intimation qua his share of profit in a firm of which he was partner, only after due date of filing his estimate of advance tax under section 212(3A) - ITO levied interest for non-payment of advance tax under section 217(1A) - Whether levy of such interest was a mistake apparent from record which was rectifiable under section 154 - Held, on facts, yes Facts The assessee, being partner in a firm, received intimation about his share of profit only after the expiry of the due date of filing his estimate of advance tax under section 212(3A). The ITO levied interest on the assessee under section 217(1A) for the assessee's failure to furnish an estimate of advance tax under section 212(3A). The assessee sought deletion of the interest by way of rectification under section 154. The ITO rejected the assessee's application and the AAC upheld the ITO's order. On further appeal, the Tribunal found that there was a reasonable cause for failure to furnish estimate of advance tax by the assessee under section 212(3A). It, accordingly, held that there was a mistake apparent from record which required rectification under section 154. On reference: Held It is well established that remedy against addition of interest lies by way of rectification under section 154 or revision under section 263. On the facts of the case, the Tribunal's finding that there was reasonable cause for failure to furnish an estimate of advance tax payable under section 212(3A) was well founded. Also the discovery of mistake in the case did not require any argument or long-drawn process of reasoning. Consequently, the Tribunal was right in holding that the mistake of charging interest under section 217(1A) was rectifiable under section 154. Case review CIT v. Geeta Ram Kali Ram [1980] 121 ITR 708 (All.) (FB) followed. Cases referred to CIT v. Geeta Ram Kali Ram [1980] 121 ITR 708 (All.) and T.S. Balaram, ITO v. Volkart Bros. [1971] 82 ITR 50 (SC). IT REFERENCE NO. 136 OF 1981. M. Katju for the Applicant . K.B. Jindal for the…

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