Law:

Section:

Section 209A(1)(a), read with sections 217(1)(a) and 273, of the Income-tax Act, 1961 - Advance tax - Computation and payment - Whether where income of assessee for previous assessment year has been assessed as nil, assessee is under no obligation to furnish a statement as required by section 209A(1)(a), and, therefore, he could not be made liable to pay interest under section 217(1)(a) or penalty under section 273 for not filing such statement - Held, yes Facts The assessee-company's assessment for the assessment year 1977-78 had been completed determining its income as nil. Therefore, for the assessment year under consideration, namely, 1979-80, corresponding to the previous year ended on 30-6-1978, the assessee did not file a statement of or pay any advance tax on 15-6-1978 when the first instalment thereof became due. The assessee, however, filed a revised return on 11-9-1981 declaring certain income and paid tax on self-assessment basis. The ITO completed the assessment and issued notices to the assessee for imposing penalty under section 273 and interest under section 217(1)(a). On writ, the assessee challenged the said notices contending that it was not liable to pay interest under section 217(1)(a) or a penalty under section 273 because it was under no obligation to furnish to the ITO the statement required by section 209A(1)(a) as it had been assessed at a nil income for the previous assessment year. Held The statement that the assessee is obliged to send under section 209A( 1)(a) is a statement of the computation of the advance tax payable by him, such computation to be made as provided by section 209(1 )(a). If upon such computation being made no advance tax is found to be payable, there is no 'advance tax payable'. There being no 'advance tax payable' there is no obligation to send to the ITO a statement of such computation. Therefore, the assessee, in the present case, was not obliged to send to the ITO the statement referred to in section 209A(1 )(a). It could not, therefore, be made liable to pay interest under section 217(1 )(a) or a penalty under section 273. D. Dwarkadas and S. Ganesh for the Petitioner. G.S. Jetly and J.P. Deodhar for the…

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