9911796707
TMI Blog1992 (4) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... u thereof an estimate of its current income and the tax payable thereon [209A(2)]. It is common ground that the assessee failed to do so. For the said assessment year the assessee's income was finally determined at Rs. 3,98,330. While making the assessment, the Assessing Officer failed to charge interest under section 217(1)(a) of the Act. For a fact, as is ex facie clear from the assessment order, the Assessing Officer did not discuss this aspect of the matter at all. Holding that the non-levy of interest under section 217(1)(a) of the Act was erroneous in that it was prejudicial to the interests of the revenue, the Commissioner put the assessee on notice of his intention to pass suitable order in revision under section 263 of the Act an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax in advance by the assessee, which is based on the principle of " Pay As Your Earn " (PAYE), has been in vogue in India for quite some time. Under the Indian Income-tax Act, 1922 (' the Old Act), an order under section 18A(1)(a) passed by the ITO fastened on old assessees the liability to pay advance tax. The said order was to be passed on the basis of the latest completed assessment. If subsequent to the passing of the said order and before the 15th day of February of the relevant financial year an assessment for a subsequent year was passed, an amended order had to be passed [see third proviso to section 18A(1)(a)]. Such an amended order may have the effect of revising upward the advance tax payable by the assessee ; or, again, it may h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inance Act, 1963 amended the said scheme in two important respects. First, it dispensed with the requiremet it of passing an amended order revising downward the advance tax payable by the assessee and of refunding to the assessee the excess, if any, of the advance tax paid by the assessee. In other words, as a result of the said amendment, the scheme contemplated only upward revision of the advance tax payable by the assessee. Secondly, an amended order revising upward the advance tax payable could be passed on the basis of a provisional assessment made under section 141 of the Act also. 7. Then came the Finance Act, 1964 which introduced the concept of self-assessment. The newly introduced section 140A obligated the assessee to pay tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the financial year --- tax is paid by the assessee under section 140A, or --- a regular assessment or a provisional assessment under section 141 is made in respect of a previous year later than the one referred to in the order under section 210(1), an amended order might be passed, revising upwards the advance tax liability. Thus, with the introduction of the 1964 amendment, even section 210(1) lost its fixed focus, namely, the latest completed assessment. Its focus became in a sense ambulatory, the intention being to fix the focus on the higher of the following two quantities : (i) the assessee's total income of the latest previous year in respect of which he had been assessed by way of regular assessment ; and (ii) the total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee by paying self-assessment tax thereon under section 140A. 8. The Finance Act, 1978 introduced an important change in the scheme of payment of tax in advance. It inserted into the Act section 209A, which introduced for the first time the concept of payment of advance tax on " voluntary basis " by old assessees. Now, under the scheme the old assessees are obligated to pay, suo motu, advance tax without waiting for an order under section 210(1). Under section 209A(1)(a) read with section 209(1)(d)(i) an old assessee was obligated to file a statement on the basis of the total income computed in the latest completed assessment, or the total income on which self-assessment tax was paid by the assessee under section 140A of the Act, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine the case before us in the light of the foregoing analysis of the legal position. In the case before us we are concerned with the assessment year 1983-84. The year of account ending on 30-6-1982 was the relevant previous year. Therefore, under section 211(1)(i), advance-tax was payable in three equal instalments on 15-6-1982, 15-9-1982 and 15-12-1982. 12. What was the position that was obtaining on 15-6-1982, being the date on which the first instalment of advance-tax was payable by the assessee ? As on that date, the latest completed assessment was the one relating to the assessment year 1979-80. (The said assessment was made on 14-9-1981). But the said assessment had resulted in a loss of Rs. 22.390 being determined. Therefore, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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