9911796707
TMI Blog1982 (8) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 the assessee filed an estimate dt. 12th Dec., 1975 in which he estimated his liability for advance tax at Rs. 2,46,059. On 24th Dec., 1975 the assessee paid Rs. 1,32,000. On 11th March, 1976, the assessee sent a revised estimate, which was received by the Department on 12th March, 1976. Under the same the advance tax liability was estimated by Rs. 3,23,103. After setting off the earlier payments, the assessee paid the balance amount of Rs. 1,59,103 by a challan dt. 30th March, 1976, which was cleared by the Reserve Bank on 6th April, 1976. By the assessment order dt. 28th May, 1979, the total income of the assessee was computed at Rs. 8,31,250 and the net tax liability at Rs. 6,11,019. Against this liability the ITO considered only the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Chloride India Ltd. vs. CIT (1977) 106 ITR 38 (Cal). On the other hand, it was contended by the ld. Deptl. Rep. that the liability has to be determined on the basis of the tax originally determined by the ITO. He also adopted the reasoning of the CIT (A) who held that if the contention of the assessee is accepted, sub-s. (3) of s. 215 will be rendered redundant. 6. On a careful consideration of the matter, we are of the opinion that the assessee is entitled to succeed in his contention. There is no dispute about the fact that the advance tax paid by the assessee will be less than 75 per cent of the assessed tax only if the tax is computed on the income as determined by the ITO and that the advance tax will not be less than 75 per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O to give effect to the order of the appellate authority is an order of assessment under s 143. The matter came up for consideration before the Calcutta High Court with reference to s. 214 in the case of Chloride India Ltd. vs. CIT (1977) 106 ITR 38 (Cal) relied upon by the assessee. Sec. 214, which relates to the interest payable by the Government to the assessee on the excess amount of the advance tax also refers to the amount of tax determined on regular assessment. In dealing with the question whether the order of the ITO giving effect to the order of the appellate authority can be treated as 'regular assessment', the Calcutta High Court held that an order which is made by the ITO to give effect to the order of the AAC is an order of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of interest. It is only proper that in such cases a specific provision is made for reducing the interest in pursuance to the order of the appellate authority and for refunding the excess amount. Merely because an express provision was made for the purpose, it will not be proper to infer that for the purpose of determining the initial liability of the assessee for payment of interest, only the tax as originally determined by the ITO can be taken into consideration. It may be noted in this connection that in the ruling of the Calcutta High Court referred to earlier, the Revenue had relied upon sub-s. (3) of s. 215 and sub-s. (1A) of s. 214 to contend for the position that the 'regular assessment' can mean only the original assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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