9911796707
TMI Blog1994 (10) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax, the Income-tax Appellate Tribunal, Ahmedabad, has referred the following question of law arising out of its order passed in I.T.A. No. 377/Ahd./1982 relating to the assessment year 1976-77: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the assessee was not liable to pay interest amounting to Rs. 21,840 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take, the doubtful position of law or circumstances beyond the control of the assessee. So also, when the payment of advance tax is wrongly deferred, that might be as a result of a bona fide mistake, or doubtful position of law or circumstances beyond the control of the assessee. If the Legislature wanted interest levied under section 216 to be compensatory in character, then it would have used a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble, or he had wrongly and deliberately deferred payment of advance tax...." We express our full agreement with the aforesaid pronouncement on the interpretation of section 216 of the Income-tax Act. In this connection, the decision of the Allahabad High Court in the case of CIT v. Elgin Mills Co. Ltd. [1980] 123 ITR 712 may also be usefully referred to wherein their Lordships opined that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an estimate of Rs. 6 lakhs. In view of this finding and as per the principles enunciated by this court referred to above, the interest was not leviable as the same did not come within the purview of section 216 of the Act. We, therefore, answer the question referred to us in the affirmative in favour of the assessee and against the Revenue. Reference stands disposed of accordingly with no order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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