9911796707
TMI Blog1979 (10) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... been disallowed, the assessment was reopened. By the reassessment order dt, 23rd Aug., 1977 after disallowing certain inadmissible expenditure, the total income was redetermined at Rs. 1,59,140 and interest also was charged under s. 217(1A) of the Act. 3. The assessee appealed against the disallowances as well as the charging of interest under s. 217(1A). The AAC deleted a disallowance of Rs. 5,000 out of the travelling expenses, confirming the disallowance made under s. 80G and also confirming the levy of interest. 4. This further appeal is confined to the levy of interest under s. 217(1A). The ITO had issued a notice of demand under s. 210 calling upon the assessee to pay advance tax of Rs. 75,265 on the basis of the income determine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der s. 210 but yet falls below 33 1/3 per cent over it by which the estimate is required to beneficiary filed under s. 212(3A) of the Act. According to the assessee there is nothing to prevent the filing of acquisition estimate, in such a situation also and such acquisition estimate is no less and estimate and merely because the ITO is unable to deal with it under any particular provision of the Act it cannot beneficiary said that the assessee had failed to file acquisition estimate. According to the assessee, once acquisition estimate is before the ITO, it has to beneficiary looked into and if there is acquisition under-estimation the appropriate sections could beneficiary invoked. But, it could not beneficiary ignored for the purpose of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls short of 75 per cent of the assessed tax. However, s. 217 lays down that interest is payable by acquisition as, when no estimate is made, on the amount equal to assessed tax as defined in s. 215(5) of the Act. Though the assessed tax defined thus means the tax reduced by tax deducted at source, any advance tax paid is not set off perhaps on the presumption that where no estimate is filed, no advance-tax is paid. We do not think that this presumption could be the basis of the imposition of interest where infact advance tax has been paid. In such a situation the facts of the case would shift from the scope of s. 217 to s. 215 where interest is chargeable only if the advance tax paid falls short of 75 per cent which is the basic criteria fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal be held to be not maintainable in part, there is also the fact that this appeal is against the order of the AAC and hence maintainable as such. Even with regard to the appeal before the AAC it was against the reassessment as such and the grounds relating to certain additions as well as the charging of interest were only incidental and alternative grounds. Hence we are of the opinion that the assessee is entitled to agitate the question of charging of interest especially when he was denying the liability under s. 217(1A) of the Act. 8. In these circumstances, we hold that the charging of interest under s. 217(1A) was not justified by the facts of the case which do not fall within the scope of that section and we, accordingly, delet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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