9911796707
TMI Blog1991 (5) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... first instalment of one-third of the said amount, namely, Rs. 1,06,833 on June 11,1973. Later, on September 5, 1973, the Income-tax Officer served another demand notice upon the assessee under section 210 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), this time requiring it to pay Rs. 1,16,211 as the second instalment of advance tax. This, the assessee paid on September 13, 1973. As regards the third and final instalment of advance tax of Rs. 1,16,211, the assessee paid this amount by cheque which was despatched from Rajpura on December 14, 1973, the due date for this instalment being December 15, 1973. The record shows that this cheque was cleared by the bank on December 24, 1973, and eventually credited to the Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o contend that no interest was payable where the advance tax is paid after the due date as specified in section 211 of the Act, the argument being that when this provision of law specified particular dates for payment of advance tax it thereby renders such dates mandatory and interest on excess advance tax paid is thus payable only if it is paid before these dates and not otherwise. Support for this contention was sought by reference to the Direct Tax Laws (Amendment) Act, 1987, where, with effect from April 1, 1988, a proviso has been added to section 211 of the Act, which reads as under : "Provided that any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up before the end of the financial year. It has also been observed that there is no further condition that the instalments of advance tax must have been paid on or before the due dates mentioned in section 211 of the Act. Failure to pay any instalment on the due date might involve an assessee in payment of penalty, if the other conditions regarding payment of penalty are satisfied, but the concept of section 214 is totally unconnected with deprivation of interest. Whether or not penalty is incurred, interest on advance tax must be paid if the two conditions referred to earlier are satisfied. This has been so held by the High Court of Gujarat in Chandrakant Damodardas v. ITO 1980] 123 ITR 748, which was later followed in Anup Engineering Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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