9911796707
TMI Blog1995 (3) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the advance tax of Rs. 86,355 paid during the financial year ended March 31, 1978 ? 2. Whether the Tribunal was right in holding that the Inspecting Assistant Commissioner (Assessment) was not competent to pass an order under section 154 of the Income-tax Act when his attention was drawn to the fact that he had omitted to give interest under section 214 on the above amount due to the assessee ? " The brief facts of the case are that the assessee submitted the returns of its income and claimed a refund of Rs. 1,82,000 on the ground that the advance tax paid was Rs. 15.62 lakhs which was deposited without taking into consideration the tax deducted at source. In the assessment which was framed by the Inspecting Assistant Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the said order. Before the Commissioner of Income-tax (Appeals), it was submitted that the original demand notice for advance tax sent by the Income-tax Officer under section 210 was for a sum of Rs. 14,75,530. This notice was received in May, 1977, and the amount was deposited in three instalments. This demand was revised by an order dated September 30, 1977, and a sum of Rs. 15,61,885 was demanded. According to the Department, the interest under section 214 is not payable where there is delay in making the payment of the amount due on the last instalment, while according to the assessee, if the amount of advance tax instalments have been paid, in the financial year, interest under section 214 is allowable to the appellant. The Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, therefore, it cannot be considered to be a mistake apparent from the record as a long-drawn process of arguments is required to justify the claim of the assessee. Learned counsel for the assessee has submitted that no arguments are required in the matter and the law is clear that if the amount is paid within the financial year, the assessee is entitled for the interest on the amount of advance tax. We have considered over the matter. The amount of Rs. 75,000 was deposited beyond the period prescribed under section 210, but was deposited within the financial year. The belated payment, if it has been paid during the financial year has been held to be eligible for interest under section 214 by a majority of the High Courts in the cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apex court has considered that the mistake must be self-evident, and it must be an obvious and patent mistake and not one which can be established by a long-drawn process of reasonings. In view of the law propounded by the apex court, since there could have been two opinions, we are of the opinion that the Tribunal was justified in rejecting the claim of the assessee that in the proceedings under section 154, the claim of interest in respect of instalments is an arguable point and cannot be allowed. In these circumstances, we do not feel that question No. 1 should be decided on the merits. The assessing authority cannot be said to have committed an error of law in not allowing refund in the proceedings under section 154. The decision in CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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