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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 ..... d September 6, 1961, dismissing Writ Petition No. 483 of 1957 filed by the appellant-petitioner, Messrs. P. C. Dwadesh Shreni and Company Limited, Aligarh (hereinafter referred to as the company). The Income-tax Officer demanded a certain amount of money as advance payment of income-tax under section 18A of the Income-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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble under the head ' Salaries '. the Income-tax Officer may, on or after the 1st day of April in any financial year, by order in writing, require an assessee to pay quarterly to the credit of the Central Government on the 15th day of June, 15th day of September, 15th day of December and 15th day of March in that year, respectively, 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 bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt has been paid either in cash or by adjustment and only the balance remained to be paid. Mr. Pachauri lays stress upon the words " no payment of tax has been made ". In our judgment the submission is not well founded. The expression " no payment of tax has been made " is comprehensive enough to include a case of partial non-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) hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emaining unpaid, simple interest shall be charged at the rate of six per cent. per annum from the 1st of January, in the financial year in which the tax was liable to be paid up to the date of regular assessment. As said earlier, the legislature, on the ground of convenience only, did not insert in subsection (8) the words " simple 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Gupta J. rejected the submission of the company. We are of the opinion that the amount adjusted must be treated as a payment made and to that extent, with great respect to Brij Lal Gupta J., we disagree with him. But that does not improve the position of the company and for the reasons, which we have already given in our judgment, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in case of default of payment, interest shall be calculated in the manner provided in sub-section (6) and the amount arrived at shall be added to the tax determined on the basis of the regular assessment. In the present case what has been done is that in the assessment form appended to the notice of demand issued under section 29 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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