Law:

Section:

Section 215 of the Income-tax Act, 1961 [Corresponding to section 18A(6) of the Indian Income-tax Act, 1922] - Advance tax - Interest payable by assessee - ITO demanded certain amount of money as advance payment of tax under section 18A - Assessee did not pay any part of demand on ground that it being entitled to a certain refund and amount of refund being in excess of demand, no payment was required to be made - Later, on ground of default in payment of advance tax revenue imposed interest under section 18A(8) on assessee - Assessee's case was that on a correct interpretation of section 18A(8) no interest was liable to be paid by it and that in absence of an order determining impugned amount of interest same was not chargeable - Whether section 18A(8) or any provision under Act does not require a separate order awarding interest - Held, yes - Whether since in assessment form not only amount determined in regular assessment, but also amount calculated under sub-section (8) read with sub-section (6) of section 18A of 1922 Act had been shown, objection raised by assessee was to be set aside - Held, yes - Whether, consequently, impugned order levying interest under section 18A(8) of 1922 Act from assessee was to be affirmed - Held, yes FACTS The ITO demanded a certain amount of money as advance payment of income-tax under section 18A, from the company. The company did not pay any part of the demand. The stand taken by it was that, it being entitled to a certain refund and the amount of refund being in excess of the demand, no payment was required to be made. On the ground of default in payment of advance income-tax, the income-tax department determined the sum of Rs. 4,805 as payable by the company to the department as interest under section 18A(8). The company filed an appeal, which was dismissed by the AAC on the finding that it was not competent. The Tribunal, on an appeal by the company, affirmed the order of the AAC by dismissing the appeal. Thereafter, the company moved writ petition which was dismissed. In instant appeal, it was contended on behalf of assessee (1) that, on a correct interpretation of the provisions of section 18A(8) of the 1922 Act, no…

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