9911796707
TMI Blog1986 (4) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... s were as follows :. ---------------------------------------------------------------------------- Due date of Date of tender of Date of encashment Amount Rs. instalment at the counter of cheque cheque ---------------------------------------------------------------------------- 15-9-1975 13-9-1975 25-9-1975 18,44,215 15-12-1975 12-12-1975 22-12-1975 18,44,215 15-3-1976 12-3-1976 19-3-1976 99,98,320 ---------------------------------------------------------------------------- The IAC while completing the assessment did not allow the interest on the excess advance tax paid. The assessee-company, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT [1980] 122 ITR 587 submitted to us that where the advance tax paid by the assessee was after due dates fixed for instalments, the assessee is not entitled to interest under section 214 on the excess advance tax paid. In these circumstances, according to Shri Tej Prakash, if interest on excess advance tax was not allowed by the IAC this was not a mistake, what to say of a mistake apparent from the record which may be rectified by order under section 154. Shri Tej Prakash, therefore, vehemently argued before us that the order of the Commissioner (Appeals) was erroneous and should be reversed. 5. On the other hand, the assessee's learned counsel Shri Pardiwalla submitted to us that payment for each of the three instalments was made befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1965 had issued a circular, the relevant extract from which is as follows : "According the rule 79(1) (a) of the Central Treasury Rules, a treasury is authorised to accept only cheques drawn on local banks in payment of Government dues and the provision contained in rule 80 of these Rules that the payment will be deemed to have been made on the date of the presentation of the cheques will apply to the cheques drawn on local banks. Since the payment in this case was not in accordance Treasury Rules, the cheques having been drawn on an outstation bank, the effective date of payment was the date on which the cheque was encashed. In the above case, the treasury actually credited the amount to the Government account on 15-4-1958. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ediately or on the same day or on the next working day for encashment in which event the date of presentation of the cheques to the State Bank or the Reserve Bank was the date of payment and not the date on which the cheque was actually encashed. In spite of a specific query by the Bench, the learned departmental representative, Shri Tej Prakash, has not been able to give us the date on which the cheques were actually presented to the Reserve Bank for encashment. We would, however, not be unjustified in making the presumption that the ITO or the IAC, as the case may be, did his duty as directed by the Board in the circular and if this is done all the three payments under consideration here were made on or before the due date of the payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
