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TMI Blog1978 (3) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... ayable by the assessee was Rs. 1,05,402. Out of this amount, Rs. 91,576 had been deducted at source, while the assessee had paid advance tax in the sum of Rs. 58,882. The assessment order in respect of the year 1970-71 was passed by the ITO on 22nd February, 1971, determining the gross tax payable by the petitioner to be Rs. 75,444. Out of this amount, Rs. 91,035 had been deducted at source and Rs. 46,519 had been deposited by the assessee by way of advance tax. The ITO did not grant any interest on the amounts which had been deposited by the assessee over and above the amounts found due from the assessee on the ground that the advance tax paid was less than the gross tax. Aggrieved by the judgments and orders of the ITO refusing to awar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 1970-71 ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the assessee was not entitled to any further interest under s. 214 for the assessment year 1970-71 on excess tax deducted at source in addition to the interest payable on the advance tax of Rs. 46,500 ? " It would be seen from the above that the first question that arises for our decision is whether the assessee was entitled to get interest on the amounts paid as advance tax. Learned counsel for the revenue urged that the interest under s. 214 would be payable only on the difference between the advance tax paid and the gross tax payable, and, therefore, if the advance tax paid is less than the gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sate an assessee for the overpayment which he has made by way of advance tax by giving him interest on the amount paid as advance tax. If the tax deducted at source meets the entire liability of tax found payable by an assessee, such an assessee would be entitled to get interest on the entire amount of advance tax as the same would be refundable to him. It is not correct to argue that for the purposes of determining the liability of interest under this provision, the tax deducted at source has to be ignored and if the advance tax paid is found to be more than the gross liability determined, only then the interest would be payable under this section. Under s. 199 of the Act, any deduction made in accordance with the provisions of ss. 192 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as income of the assessee for the purpose of computing his income. Under s. 199 of the Act, credit is given to an assessee from whom the deduction has been made. Learned counsel for the assessee failed to point out any provision in the Act under which the interest is payable on the amounts or moneys deducted at source in excess of the liability of tax found due. S. 214 applies only to amounts deposited as advance tax. As already pointed out above, only the amounts deposited under ss. 208 to 213 can be classified as advance tax. The amounts deducted at source cannot be treated as advance tax. As there is no provision in the statute for the payment of interest on the amounts deducted at source, it is not possible to accept the cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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