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TMI Blog1982 (6) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 only by way of advance-tax; he did not treat Rs. 82,043 as advance-tax as the instalments in question had been paid by the assessee company after the due dates specified in s. 211 of the IT Act, 1961. The instalment which was paid in time and which was regarded as a payment of advance-tax was the one which the assessee company had paid on 13th June, 1975, amounting to Rs. 41,022. As not being advance-tax were paid by the assessee- company on the following dates: 23rd Jan., 1976 41,022 28th Feb., 1976 21,022 March, 1976 19,999 The accounting year of the assessee is calendar year and, therefore, in terms of s. 211 last instalment payable u/s 211 fell due on 15th December 1975. Thus the last three instalments were clearly beyond the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 65 (Del). 4. CIT vs. Raghubir Singh & Sons (1980) 18 CTR (P&H) 107 : (1980) 125 ITR 256 (P&H). 5. In our opinion, the departmental contention is not sound and does not have the weight of authority in its favour. The decision of the Hon'ble High Court relied upon by the revenue was on different facts altogether. There the only ground of appeal was whether or not interest u/s 139 (8) was chargeable. To this question, the Hon'ble Gauhati High Court had given its reply, viz., that s. 246 (c) does not provide for any appeal against the levy of interest in accordance with the provisions of s. 139. It did not deal with a situation where the liability to assessee was being challenged and there were others grounds of appeal also. The authorities o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e working out interest u/s139 (8). 7. On behalf of the assessee, however, the aforesaid view point is strongly contested and it is pointed out that advance-tax is payable with reference to the financial year as has been amplified in s. 208 of the IT Act, 1961, and payment made during the financial year towards advance-tax payment would have to be treated as advance-tax. According to him, the dates mentioned in s. 211 for payment of instalments of advance-tax were merely a directory and were not mandatory and their purpose was to provide uniform basis for the department for collection of taxes and any slight variation from those date would not change the character of payment from advance-tax to any other. In this connection, the ld, counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enders him liable to penalty u/s 221 read with s. 218 and to various recovery procedures laid down in Chapter 'D' of Part XVII of the IT Act, 1961. Such recoveries would be of the tax, which had been defaulted and as it is advance-tax which was so defaulted, the recovery would also be of advance-tax and credit for it will have to be given to the assessee while computing the interest u/s 139 (8) read with s. 219 of the IT Act, 1961. We find support for the above proposition from the authorities relied upon by the assessee and from the decision of the Hon'ble Kerala High Court in Santha S.Shenoy & Ors. vs. Union of India (1982) 29 CTR (Ker) 127 : (1982) 135 ITR 39 (Ker). 9. In the result, we confirm the order of the ld. CIT (Appeals) and rej ..... X X X X Extracts X X X X X X X X Extracts X X X X
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