1998 (12) TMI 48 - HC - Income Tax

Summary

The Madras High Court ruled that a registered firm that paid excess advance tax does not incur interest under section 139(8) of the IT Act. The court cited a Supreme Court decision stating that interest for late filing is compensatory, not penal, and a registered firm is not liable for interest if advance tax covers the entire tax assessed. The High Court held in favor of the assessee, ruling no interest is chargeable under section 139 of the IT Act.