Law:

Section:

Section 209A of the Income-tax Act, 1961 - Advance tax - Computation and payment of - Assessment year 1979-80 - Whether section 209A(4) would be attracted only in a case where assessee is liable to pay advance tax in terms of section 209A(1)/(2) - Held, yes Section 217, read with sections 209 and 209A, of the Income-tax Act, 1961 - Advance tax - Interest payable by assessee when no estimate made - Assessment year 1979-80 - Assessing Officer charged interest under section 217 for reason that assessee had not filed statement of advance tax under section 209A for assessment year 1979-80 - For previous two assessment years, namely, assessment years 1977-78 and 1978-79, assessee had filed loss returns - Whether since no advance tax was in fact payable in terms of computation under section 209(1)(a) or 209(1)(d)(i), second limb of requirement under section 209A, namely, payment of advance tax, was not capable of being fulfilled and could not in fact be fulfilled - Held, yes - Whether, therefore, assessee was not required to file statement of advance tax in terms of section 209A(1)(a) and, as such, interest under section 217 was not chargeable - Held, yes FACTS The assessee, engaged in the manufacturing of electronic goods, was assessed at a loss for the assessment year 1976-77. For the next two assessment years also, i.e., for 1977-78 and 1978-79, the assessee filed returns showing loss. For the relevant assessment year, i.e., 1979-80, it filed a return declaring an income. The Assessing Officer assessed the income and charged interest under sections 139(8) and 217 on the ground that the assessee had not filed statement of income or estimate of income under section 209A. The assessee filed an application under section 154 on ground that interest under section 217 was not chargeable. The Assessing Officer rejected that application. The Commissioner (Appeals) upheld the order of the Assessing Officer charging interest under section 217. The Tribunal, however, allowed appeal of the assessee holding that there was no case for charging of interest under section 217. On reference : HELD A reading of the provision of section 209A(1) no doubt casts an obligation on an…

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