1982 (6) TMI 119 - AT - Income Tax

Summary

Issues:
1. Charging of interest under section 139(8) of the Income Tax Act, 1961 for late filing of return.
2. Treatment of advance-tax payments made after due dates specified in section 211.
3. Jurisdiction of CIT (Appeals) to adjudicate on the chargeability of interest under section 139(8).
4. Computation of interest and treatment of payments made after due dates.

Analysis:

Issue 1: The assessee, a company, was charged interest under section 139(8) of the Income Tax Act, 1961 for filing its return late. The return was due on 30th June, 1976, but filed on 25th April, 1977. The interest was levied from 1st July, 1976 to 31st March, 1977.

Issue 2: The Income Tax Officer (ITO) did not consider certain payments as advance-tax as they were made after the due dates specified in section 211. The CIT (Appeals) reversed this decision, directing the ITO to treat these payments as advance-tax and recalculate the interest payable by the assessee-company.

Issue 3: The department contended that the CIT (Appeals) had no jurisdiction to entertain the appeal against the charging of interest under section 139(8). However, the Tribunal held that the CIT (Appeals) could adjudicate on the chargeability of interest if other grounds of appeal were present and the assessee disputed the liability to pay interest.

Issue 4: The revenue argued that payments made after the due dates specified in section 211 should not be considered as advance-tax. They relied on a decision of the Andhra Pradesh High Court. However, the Tribunal disagreed, stating that slight delays in payment should not change the character of the payment as advance-tax. The Tribunal upheld the CIT (Appeals) decision to treat these payments as advance-tax and rejected the department's appeal.

In conclusion, the Tribunal confirmed the CIT (Appeals) order, emphasizing that payments made slightly after the due dates should still be considered as advance-tax, and the assessee should receive credit for such payments while computing interest under section 139(8) of the Income Tax Act, 1961.