9911796707
TMI Blog1992 (5) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the Income-tax Appellate Tribunal was justified in coming to the conclusion that the proceedings under section 154 could not be started against the assessee ? (3) Whether, on the facts and in the circumstances of the case, interest could be charged under section 215 or section 217(1A) ? (4) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in cancelling the order passed by the Income-tax Officer rectifying the mistake which was apparent from the records ? The assessment year involved is 1974-75. The assessee is a limited company. It paid a sum of Rs. 21,943 as advance tax in accordance with the provisions of section 210 of the Act pursuant to an ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law, came to the conclusion that, on the facts of the case, the Income-tax Officer could not have taken recourse to the rectification proceeding as contemplated under section 154 of the Act. It also took the view that, since the assessee had filed the estimate under section 212(3A) of the Act, even on merits, no interest Was chargeable under section 217(1A) of the Act. Accordingly, a direction was issued for refund. I would first like to deal with question No. (3) referred to above. For proper appreciation of the question, it will be proper to quote the relevant provisions of the Act which are as under "Section 212. (3A) In the case of any assessee who is required to pay advance tax by an order under section 210, if, by reason of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that in the case of an assessee, being a company, the provisions of this subsection shall have effect as if for the words 'seventy-five per cent.', the words 'eighty-three and one-third per cent.' had been substituted. Section 217. (1A) Where, on making the regular assessment, the Income-tax Officer finds that any person who is required to send an estimate under sub-section (4) of section 209A or any such person as is referred to in sub-section (3A) of section 212 has not sent the estimate referred to therein, simple interest at the rate of fifteen per cent. per annum from the 1st day of April, next following the financial year in which the advance tax was payable in accordance with the said subsection (4) or, as the case may be, sub-s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 215 of the Act will come into play and interest will be payable tinder this section in respect of the shortfall in the advance tax payable. No doubt, if section 215 is construed literally, it may be possible to hold that, in a case where the estimate is filed under section 212 but no advance tax is paid on the basis of such an estimate, then, this provision will have no application because the opening sentence of the section is as under : " Where, in any financial year, an assessee has paid advance tax under section 209A or section 212 on the basis of his own estimate". But this question has already been considered by the Supreme Court long back in the case of Gursahai Saigal v. CIT [1963] 48 ITR 1 (SC); AIR 1963 SC 1062. In thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to above. Since on the facts of the case, I have taken the view that no interest is at all chargeable under section 217(1A) of the Act, therefore, the answer to question No. 2 will be merely academic. Accordingly, decline to enter into this question. Questions Nos. (1) and (4), referred to above, are merely consequential to the answer given to question No. (3), which has been answered in favour of the assessee. Therefore, question Nos. (1) and (4) are also answered in favour of the assessee and against the Revenue. However, in the facts and circumstances of the case, there shall be no order as to costs. Let a copy of this judgment be transmitted to the Assistant Registrar, Income-tax Appellate Tribunal, Patna Bench, Patna, in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X
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