Law: Income Tax Act, 1961

Section: 212,212(3A),217,217(1A)

Income-tax----Advance Tax---Estimate filed---Failure to pay advance tax as per estimate filed---Interest cannot be levied---Indian Income Tax Act, 1961, Ss.212(3A) & 217(1A). Although the obligation cast on the assessee under section 212(3A) of the Income Tax Act, 1961, included not only the filing of an estimate of advance tax payable, but also the payment of the advance tax in accordance with that estimate, failure to pay the advance tax in accordance with that estimate has not been made ground for levy of interest under section 217(1A) of the Act, and in the absence of language explicitly providing for levy of interest on the advance tax not remitted with the estimate, such interest cannot be levied in a case where the estimate is filed without paying the further amounts payable as advance tax. The assessment year in question was 1975-76. The assessee after paying the advance tax demanded, had also filed an estimate of advance tax payable as required under section 212(3A) of the Income-tax Act. The assessee after sending the estimate did not pay the advance tax payable in accordance with that estimate. In the order of assessment, the Income-tax Officer being of the view that section 217(1A) of the Act was attracted, levied interest under that provision. The assessee thereupon petitioned the Income-tax Officer to rectify the assessment. The rectification was refused by the Income-tax Officer, but was allowed by the Commissioner of Income-tax (Appeals), and the Tribunal. On a reference: Held, that the levy of interest on the amount of the advance tax which had not been remitted in accordance with the estimate was clearly an error committed by the Income-tax Officer and which error was apparent on the face of the record capable of being corrected under section 154. CIT v. Bihar Journals Ltd. (1992) 198 ITR 458 (Pat.) ref. JUDGMENT R. JAYASIMHA BABU, J.---At the instance of the Revenue, the is have been referred to us for our consideration: "(i) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the interest under section 217(1 A) of the Income Tax Act, 1961, cannot be charged in this case on the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492