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TMI Blog1966 (4) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act, 1922 (hereinafter referred to as the Act), from the company. Admittedly, the company did not pay any part of the demand. The stand taken by it was that, being entitled to a certain refund and the amount of refund being in excess of the demand, no payment was required to be made. In the writ petition and the affidavit filed in support of it, an averment was made that the sum of Rs. 7,415-5-0 out of the amount which the company was entitled to receive as refund was adjusted by the Income-tax Officer towards the payment of advance income tax demanded from the company. This position is admitted on behalf of the income-tax department in the counter-affidavit. On the ground of default in payment of advance income-tax, the income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectively, an amount equal to one quarter of the income-tax and super-tax payable on so much of such income as is included in his total income of the latest previous year in respect of which he has been assessed, ....... (6) Where in any year an assessee has paid tax under sub-section (2) or sub-section (3) on the basis of his own estimate, and the tax so paid is less than eighty per cent. of the tax determined on the basis of the regular assessment (reduced by the amount of tax deductible in accordance with the provisions of section 18 on any income, other than income chargeable under the head ' Salaries ', included in such assessment), so far as such tax relates to income other than income chargeable under the head ' Salaries ' and so far ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-payment. That expression, in our judgment, means when the amount due has not been paid, whatever be the amount, whole or part. Mr. Pachauri has placed reliance upon the provisions of sub-section (6) of section 18A of the Act. His contention is that the use of the words " interest calculated in the manner laid down in sub-section (6) " occurring in sub-section (8) suggests that the provisions of sub-section (6) have been made applicable to proceedings under sub-section (8) and that inasmuch as subsection (6) in its operation is confined to a case where a payment made under sub-section (2) or (3) of section 18A is ultimately, at the time of final assessment, found to be short, no interest can be charged in the present case, not being a ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ple interest at the rate of six per cent. per annum from the first day of January, in the financial year in which the tax was liable to be paid up to the date of regular assessment shall be payable by the assessee upon the amount by which the tax so paid falls short " and just used the words " interest calculated in the manner laid down in sub-section (6) shall be added to the tax as determined on the basis of the regular assessment ". We are, therefore, satisfied that the first submission of Mr. Pachauri is without any merits and for that reason we overrule it. It is true that Brij Lal Gupta J. disposed of a similar submission made before him on the ground that the adjustment would not amount to payment. The learned single judge has in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, we have come to the conclusion that, in the circumstances of the case, interest was payable by the company on the balance of the amount due from it as advance income-tax. We find some support from Gursahai Saigal v. Commissioner of Income-tax. Their Lordships have observed as follows: " That sub-section (8) intended to and did in the clearest terms impose a charge for interest seems to us to be beyond dispute. It says that interest calculated in a certain manner ' shall be added to the tax '. We do not here have to resort to any equitable rule of construction or to alter the meaning of the language used or to add to or vary it in order to arrive at the conclusion that the provision intended to impose a liability to pay interest. That is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, the sum of Rs. 4,805 has been added to the amount of tax on the basis of the regular assessment. Section 18A(8) or any other provision in the Act does not require a separate order awarding interest. Sub-section (8) only provides that the amount calculated shall be added to the tax as determined on the basis of the regular assessment. Consequently in our judgment, the law does not require the passing of a separate order awarding interest. The only order in such a case that is required to be made is the order of assessment and the law stands fully complied with when in the assessment form not only the amount determined in the regular assessment, but also the amount calculated under sub-section (8) read with subsection (6) of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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