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TMI Blog1981 (4) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... see had been wrongly allowed interest of Rs. 12,350 (Rs. 14,612 less Rs. 2,262 withdrawn in the regular assessment) in the original assessment by the ITO under section 214 of the Income-tax Act, 1961 ('the Act"). The ITO, while completing the assessment under section 141A of the Act, had treated the payment of tax of Rs. 56,265 to be made by the assessee on the basis of the estimate filed by it on 10-3-1976 as "advance tax" and, accordingly, granted interest under section 214, amounting to Rs. 14,612 on the refund of Rs. 56,265. The Commissioner held that the assessee not being a new assessee, the estimate was not filed under any of the provisions of section 212 of the Act and, hence, the payment of tax of Rs. 56,265 based on the estimate f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand notice under section 156 of the Act to be issued by him. Under section 212 (estimate by assessee) (1) if any assessee who is required to pay advance tax by the ITO's order under section 210 estimates that his income for the relevant financial year will be less than the income on which the advance tax payable by him has been demanded by the ITO, he may at his option send to the ITO an estimate of his income and the advance tax payable in accordance therewith and pay the advance tax. Under section 212(3) any person who has not previously been assessed by way of regular assessment under the 1961 Act or the 1922 Act shall, in each financial year before the date on which the last instalment of advance tax is due from him under section 211 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, but can be treated only as an ordinary deposit. We say so because section 214 enjoins that the Central Government shall pay interest at 12 per cent per annum on the amount by which the aggregate sum of the advance tax instalments paid during any financial year in which they are payable under sections 207 to 213 exceeds the tax determined on regular assessment. In the present case, the so-called advance tax paid by the assessee is not payable under sections 207 to 213, including sections 210 and 212, having regard to the facts of the case narrated above. We, therefore, agree with the Commissioner that the assessee is not entitled to interest under section 214 on the voluntary payment of such so-called advance tax made by him. 6. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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