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Section 214 of the Income-tax Act, 1961 - Advance tax - Interest payable by government - Assessee, who was required to pay advance tax on or before 15-3-1970, which was a Sunday, issued local cheque drawn on a local bank for payment of advance tax which was received by assessing officer on 16-3-1970 -Whether payment of advance tax was within stipulated time for purposes of interest payable to assessee under section 214 - Held, on facts, yes Facts For the relevant assessment year, the assessee was required to pay advance tax on or before 15-3-1970, which was a Sunday. The assessee issued local cheques drawn on a local bank for payment of the advance tax and these cheques were received by the assessing officer on 16-3-1970 and were duly honoured and the amounts realized were credited to the Government's account. The assessing officer held that the assessee had paid the advance tax within the stipulated time and, thus, allowed interest on the excess of advance tax under section 214. However, the Commissioner, acting under section 263, held that the assessee made a belated payment of the advance tax and, thus, he was not entitled to the interest under section 214. The Tribunal restored the ITO's order, On reference : Held The assessee was entitled to interest under section 214 which was rightly allowed by the assessing officer. K. Srinivasan and H. Raghavendra Rao for the Applicant. K.R. Prasad and K. Ramanjain for the Respondent. Order Shetty, J.-The following question has been referred under section 256(1) of the Income-tax Act, 1961 ('the Act') by the Tribunal: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in cancelling the order of the Commissioner made under section 263 of the Income-tax Act, 1961 ?" 2. The facts in extenso have been set out in the statement of case, out of which we may set out only those that are just, relevant. 3. For the…

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