9911796707
TMI Blog1993 (12) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... his was paid by the assessee before June 15, 1974. The second instalment due in September, 1974, was also paid accordingly. For the last and final instalment, an estimate was filed by the assessee on December 13, 1974, estimating the income at Rs. 1.03 crores. The total tax payable came to Rs. 59,48,250. The last instalment, therefore, was of Rs. 28,68,250 which was paid by the assessee. The Income-tax Officer levied interest under section 216 of the Income-tax Act, 1961, for short payment of the first two instalments. The interest so levied was Rs. 39,846. The Commissioner of Income-tax (Appeals) has upheld this levy. Before the Tribunal, the assessee raised a plea based on a judgment of the Andhra Pradesh High Court in the case of CIT ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is agreed between the parties that in view of the decision in the case of Lubrizol India Ltd. v. CIT [1991] 187 ITR 25 (Bom), the question must be answered in the affirmative and in favour of the Revenue. Hence, this question is answered accordingly. In respect of the question which is before us at the instance of the Commissioner of Income-tax, it is necessary to examine the relevant provisions of the Income-tax Act. Section 209 of the Income-tax Act deals with computation of advance tax. Under sub-section (1)(a)(i) of section 209 advance tax has to be computed on the basis of the total income of the latest previous year in respect of which the assessee has been assessed by way of regular assessment. The income so ascertained has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or for any other reason, is liable to pay advance tax which is more than 33 1/3 per cent. of the latter amount, he shall, at any time before the date on which the last instalment of advance tax is due from him, send to the Income-tax Officer an estimate of the current income as well as of the advance tax payable by him on the current income calculated in the manner laid down under section 209, and he shall pay such amount of advance tax as set out in sub-section (2). Section 215 provides that where, in any financial year, an assessee has paid advance tax under section 212 on the basis of his own estimate, and the advance tax so paid is less than seventy-five per cent. of the assessed tax, simple interest at the rate of twelve per cent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (3A) of section 212 where the assessee finds that his current. income is likely to be greater than the income on which advance tax payable by him under section 210 has been computed. In this situation, he is required to send an estimate of his current income and of advance tax if the advance tax payable on his estimated current income is likely to exceed the amount of advance tax demanded under section 210 by more than 33 1/3 per cent. If the assessee in doing so, or under sub-sections 1), (2), (3) and (3A) of section 212, underestimates the advance tax, then he is liable to pay interest under section 216. It is difficult to accept the contention of the assessee that in order to decide whether there is any underestimation of advance t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stimate of current income under section 212. The two cannot be artificially delinked. The Calcutta High Court has differed from this conclusion arrived at by the Andhra Pradesh High Court. In the case of Pasupati Das and Sons Pvt. Ltd. v. CIT [1988] 170 ITR 110, the Calcutta High Court has held that even if advance tax is underestimated by reason of underestimation of the assessee's current income as compared to the final income actually ascertained at the end of the year, then the provisions of section 216 of the Income-tax Act, 1961, would be attracted. In the case before the Calcutta High Court, the question related to underestimation of the second instalment of advance tax payable on or before December 15, 1976. Both the Commissioner an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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