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Issues:
1. Charging of interest under section 217(1A) in reassessment. 2. Validity of filing acquisition estimate under section 212(3A) in relation to advance tax payment. 3. Maintainability of appeal against the charging of interest. Detailed Analysis: 1. The appeal was against a reassessment where interest under section 217(1A) was levied. The original assessment for the year 1972-73 determined the total income at Rs. 1,53,320. However, upon reopening the assessment, the total income was redetermined at Rs. 1,59,140, and interest under section 217(1A) was charged. The assessee appealed against the disallowances and the charging of interest. The Appellate Authority confirmed the disallowances and the levy of interest, leading to a further appeal specifically challenging the levy of interest under section 217(1A). 2. The crux of the issue was whether the assessee failed to file a valid acquisition estimate under section 212(3A) of the Act. The Income Tax Officer (ITO) and the Appellate Authority were of the view that the assessee did not file a valid estimate as required under section 212(3A), leading to the imposition of interest under section 217(1A). The Revenue contended that the imposition of interest was justified based on the failure to file a valid estimate. 3. The Tribunal considered two possible views regarding the filing of acquisition estimates and the payment of advance tax. The Revenue advocated for a technical view that an estimate should fall under section 212(3A) only if the advance tax demanded is exceeded by the estimated income. However, the Tribunal favored the view that an estimate can be filed whenever the current income results in paying advance tax over and above the demanded amount. The Tribunal emphasized that the purpose of the provisions was to collect tax in advance, and the filing of estimates was a procedural aspect. Therefore, in this case, the Tribunal held that the charging of interest under section 217(1A) was not justified as the facts did not align with the requirements of the section. 4. Regarding the maintainability of the appeal against the charging of interest, the Revenue objected, citing precedents. However, the Tribunal held that the appeal was maintainable, especially since it was against the order of the Appellate Authority and the grounds related to the charging of interest were incidental. The Tribunal concluded that the charging of interest under section 217(1A) was not justified based on the facts of the case and proceeded to delete the addition to the tax demand. In conclusion, the Tribunal allowed the appeal, ruling in favor of the assessee and deleting the addition to the tax demand related to the charging of interest under section 217(1A).
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