1984 (9) TMI 101 - AT - Income Tax

Advance Tax, Assessment Order, Assessment Year, Income Tax, Mistake Apparent From Record, Original Assessment

Summary

Issues: Interpretation of Companies Deposit (Surcharge on Income-tax) Scheme, 1976 regarding the timing of deposit for credit in income tax assessment under section 154 of the Income-tax Act, 1961.

In this case, the primary issue revolves around the correct interpretation of the Companies Deposit (Surcharge on Income-tax) Scheme, 1976 concerning the timing of a deposit for the purpose of receiving credit in the income tax assessment under section 154 of the Income-tax Act, 1961. The Income Tax Officer (ITO) initially allowed credit for a deposit made on 15-12-1976, but later withdrew this credit citing a mistake as per the provisions of the Scheme. The Commissioner (Appeals) upheld the ITO's decision, emphasizing that the deposit should have been made before the due date of the last advance tax installment. The main contention was whether the deposit made by the assessee on 15-12-1976 was timely and eligible for credit.

The assessee argued that the provisions of the Companies Deposit Scheme allowed for the deposit to be made before the last advance tax installment's due date, which was on 15-12-1976 in this case. The assessee contended that since the deposit was made on the same day, it should be considered timely. On the other hand, the departmental representative asserted that the deposit should have been made by 14-12-1976 based on the Scheme's requirements. The crux of the issue was the interpretation of the due date for the deposit under the Scheme and whether the ITO's original assessment was erroneous.

Upon considering the arguments from both parties and examining the facts, the Appellate Tribunal found that the deposit made by the assessee on 15-12-1976, the due date for the last advance tax installment, was within the permissible timeline as per the Scheme. The Tribunal noted that the Scheme allowed for the deposit to be made before the due date of the last installment of advance tax, which in this case was 15-12-1976. Therefore, the Tribunal concluded that the ITO did not commit a glaring mistake in allowing credit for the deposit in the original assessment. Consequently, the Tribunal held that the provisions of section 154 were inapplicable in this scenario and canceled the order passed by the ITO under section 154. As a result, the appeal by the assessee was successful, and the decision was in favor of the assessee.