1992 (4) TMI 108 - AT - Income Tax

Summary

Issues:
1. Failure to file a statement of advance tax by the assessee for the assessment year.
2. Obligation of the old assessee to send in a statement under section 209A(1)(a) or an estimate under section 209A(2).
3. Levy of interest under section 217(1)(a) for non-compliance with advance tax requirements.

Detailed Analysis:
Issue 1: The assessee, a firm, failed to file a statement of advance tax for the assessment year 1983-84 by the due date of 15-6-1982, as required under sections 209A(1)(a) and 209A(2). The Commissioner of Income-tax, Central-II, Madras initiated a revision under section 263 of the Act due to the Assessing Officer's failure to charge interest under section 217(1)(a) during assessment. The assessee contended that it was not obligated to file a statement based on previous losses. The CIT directed the levy of interest under section 217(1)(a) despite the assessee's arguments.

Issue 2: The legal position regarding the obligation of old assessees to pay advance tax was analyzed. The scheme under the Income-tax Act, 1961, required old assessees to pay advance tax voluntarily under section 209A(1)(a) based on the total income of the latest completed assessment or self-assessment tax paid under section 140A, whichever was higher. The failure to comply with this requirement rendered the assessee liable to pay interest under section 217(1)(a).

Issue 3: The judgment highlighted the importance of complying with advance tax provisions and the consequences of failing to do so. The Commissioner's decision to levy interest under section 217(1)(a) was upheld based on the scheme of the Act, which prioritized maximizing advance tax collections and disregarded subsequent returns filed by the assessee showing lower income or losses. The failure to file the required statement or estimate resulted in the assessee being held liable for interest under the relevant provisions.

In conclusion, the Appellate Tribunal upheld the Commissioner's decision to levy interest under section 217(1)(a) against the assessee for non-compliance with advance tax requirements, leading to the dismissal of the assessee's appeal. The judgment emphasized the legal obligations of old assessees regarding advance tax payments and the significance of timely compliance with the provisions outlined in the Income-tax Act.