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TMI Blog1987 (7) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... interest allowed under section 214 cannot be withdrawn by invoking the provisions of section 154 of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the later binding decision of the Andhra Pradesh High Court does not give rise to a mistake apparent from the record in the order already passed ? " For the assessment year 1973-74, the assessee paid advance tax of Rs. 11,380 which included a sum of Rs. 3,794 paid on March 27, 1973. While completing the original assessment, the Income-tax Officer treated the payment of Rs. 3,794 as advance tax payment and allowed interest under section 214 of the Act. Subsequently, the Income-tax Officer held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uphold the order of the Tribunal. The main argument of learned standing counsel for the Income-tax Department is that this court in Kangundi Industrial Works (P.) Ltd. v. ITO [1980] 121 ITR 339 (AP), held that any payment made by an assessee subsequent to the due date of instalment cannot be held to be an advance tax payment and, consequently, the assessee would not be entitled to claim interest under section 214 of the Act. Learned standing counsel points out that the aforesaid decision constitutes a binding authority so far as the State of Andhra Pradesh is concerned and, consequently, the Income-tax Officer would be justified in rectifying the assessment under section 154 of the Act. According to learned standing counsel, it is immateri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under section 154 to rectify matters which are capable of debate and argument. In the circumstances, we are of the view that the power was erroneously exercised by the Income-tax Officer under section 154. Learned counsel for the respondent, Sri M. J. Swamy, mentioned that while the decision of this court in Kangundi Industrial Works (P.) Ltd. v. ITO [1980] 121 ITR 339, supported the view that interest cannot be allowed, there are two decisions of the Madhya Pradesh High Court in CIT v. Jagannath Narayan Kutumbik Trust [1983] 144 ITR 526 and CIT Parmanand Bhai Patel [1983] 144 ITR 871, taking a contrary view. It is not necessary for us to examine the impact of the judgment of the Madhya Pradesh High Court as, in our opinion, the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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