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TMI Blog1991 (4) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 139 (8) ? " For the assessment year 1979-80 (accounting period ending on March 31, 1979), the assessee filed the advance tax estimate only on August 24, 1979, and paid the estimated advance tax ; this was much later to the due date for filing the estimate and payment of advance tax. The Income-tax Officer completed the assessment on November 27, 1981 ; while so doing, he gave credit to the advance tax paid by the assessee and levied interest only on the balance. Subsequently, he realised that the advance tax paid by the assessee was beyond the due date and, consequently, opined that the advance tax estimate was an invalid one ; consequently, he invoked section 154 to rectify the alleged error and recomputed the interest payable und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted it and appropriated it as advance tax. Advance tax is to be computed under section 209 and is to be paid on due dates of instalments as provided in section 211. As per section 215 the assessee is liable to pay interest in case the advance tax paid is less than the assessed tax to the extent stated in the provision. In the instant case, such an interest has been levied in the original order of assessment and the same was paid. In addition, under section 139(8) also, interest is leviable whenever there is a delay in furnishing the return and the advance tax paid is less than the assessed tax ; however, the proviso to section 139(8) empowers the Income-tax Officer to waive or reduce this interest. Interest is levied not as a deterrent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expression 'advance tax' as understood by the common man, means only the tax paid prior to the assessment and can never mean a tax paid pursuant to an assessment, whether it is a provisional assessment or final assessment. Consequently, the expression 'advance tax' whether understood as defined in section 207(2) of the Act or as could be understood by the common man, will mean only one thing, viz., the tax paid before the assessment as required by the Act. As a matter of fact, the Act itself contains elaborate machinery for payment of advance tax and, therefore, wherever the expression 'advance tax' occurs in the Act, it can mean only that advance tax which was paid as required to be paid pursuant to the provisions contained in the Act. " ..... X X X X Extracts X X X X X X X X Extracts X X X X
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