9911796707
TMI Blog1995 (3) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... urce was Rs. 1.05 crores, no advance tax was paid by the assessee in the first instalment. The second instalment was paid on the same basis. Only when the 3rd instalment was to be paid, the assessee revised its estimate on 12-12-1985 and estimated total income at Rs. 2,39,42,873. Since the tax deducted at source was Rs. 1,22,60,000 by that time and since the appellant deposited Rs. 7 lakhs with the IDBI it paid Rs. 9 lakhs as advance tax on 12-12-1985. Subsequently the assessee filed a return of its income at Rs. 2,39,58,881. The assessment was completed on a total income of Rs. 3,41,18,718 which was reduced to Rs. 2,79,87,252. The A.O. passed an order under section 216 of the IT Act in which, after giving the basic facts, he took the view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shortfall was thus, hardly about 6% which could not be said to be intentional or deliberate. She relied on the decision of the Hon'ble Gujarat High Court in the case of CIT v. Nagri Mills Ltd. [1987] 166 ITR 292. According to ld. Counsel, as per the ratio of decision in that case, there can be "under-estimation" only when it was deliberate or intentional. Further, in assessee's case, there was no question of "deferment" because the tax had already been paid by way of TDS. She further submitted that in similar circumstances, the interest levied in the A.Y. 1985-86 was deleted by Tribunal vide its orders dated 24th February, 1994, a copy of which has been filed before us. 6. We have carefully considered the rival submissions. We find that l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the accounting year. Yet, if it was found that the estimate of advance tax for the first two instalments was an "under-estimate" they were liable for payment of interest under section 216. In the case of the assessee since the accounting year was to end on 30th June every year, the first estimate of advance tax was to be filed only 15 days before the close of the accounting year. It is not possible to believe that the conduct of the assessee-company would be bonafide in its income at less than half or 1/4th of the income as per its books of account when the accounts are closed only 15 days later. This feature is seen in the regular pattern mentioned earlier, that is last year as well as this year, when the first instalments were paid on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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