9911796707
TMI Blog2007 (1) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... section 216(a), the Appellate Tribunal was right in law in holding that the assessee was not liable to pay interest under section 216 in respect of the deficient payment of advance tax in the first two instalments for the assessment year 1982-83?" Briefly, the facts, as noticed by the Tribunal in the statement of case, are that during the previous year relevant to the assessment year in question, the assessee filed an estimate of advance tax payable, determining its liability at Rs. 46,12,500. As required, the advance tax was to be paid in three equated instalments on September 15, 1981, December 15, 1981 and March 15, 1982. As per the estimate filed, the first two instalments of Rs. 15,37,500 each were paid by the assessee before the du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated at Rs. 1.12 crores. The comparative details of sales with preceding year show that there was no decline in business activities. The assessee by filing estimate on September 14, 1981, deferred the payments of instalments of advance-tax and as such interest is chargeable which comes to Rs. 60,680" A perusal of the above observations made by the Assessing Officer clearly shows that in the case in hand, the assessee had underestimated the instalments of advance tax payable as otherwise comparative details of sales with preceding year showed that there was no decline in business activities. Even at the time of the argument it was not disputed by learned counsel for the assessee that in the immediately previous year the advance tax paid wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel for the assessee, a judgment of the Gauhati High Court in CIT v. Namdang Tea Co. India Ltd. [1993] 202 ITR 414 is also to the same effect. Similar are the observations made by a Full Bench of the Andhra Pradesh High Court in CIT v. Rayalaseema Mills Ltd. [1997] 228 ITR 477, wherein also it is observed that in case under-estimation of advance tax is due to under-estimation of income by the assessee or due to any other reason, the provisions of section 216 of the Act would be attracted. From the factual matrix as narrated above, which is borne out from the record, it is evident that the assessee never submitted any explanation to show the reason for paying lesser advance tax in the first two instalments and the reason for revi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neither any decline in the first six months nor there was any abnormal increase in the last months of the financial year which could form a reason for revision of the advance tax payable by the assessee. It is further specifically recorded therein that no explanation for under estimation of deferred instalments of advance tax was furnished by the assessee in spite of opportunity having been granted. Learned counsel for the assessee has referred to and relied upon a judgment of the Gauhati High Court in CIT v. Lankashi Tea and Seed Estate P. Ltd. [1996] 222 ITR 133 to submit that mere under-estimation of advance tax is not sufficient to charge interest as the authorities are required to see whether under-estimation is made deliberately to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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