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TMI Blog1985 (12) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... ). The ITO made the assessment under section 143(3), read with section 144B, of the Act. He directed in the assessment order to give tax credit for a sum of Rs. 10,68,000 paid under section 210 of the Act. It appears that he has also directed to charge interest under section 217(1A) even though the actual amount of interest and the manner of computing the same has not been stated in that order. 3. The assessee appealed to the Commissioner (Appeals) and contended that the levy of the interest was not justified. The Commissioner (Appeals) found that section 217(1A) says that interest would be charged for default in filing the statement of advance tax. He found that the assessee had paid advance tax of Rs. 10,68,000 in three instalments on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged under section 217. According to him, the said matter was not appealable. He relied on the decision in the case of CIT v. Geeta Ram Kali Ram [1980] 121 ITR 708 (All.). Even on merits he urged that there was a clear default inasmuch as the assessee did not file the statement by the prescribed date. According to him, the levy of interest under section 217 was automatic and mandatory. He relied on the decision in the case of Orissa Cement Ltd. v. CBDT [1972] 84 ITR 451 (Delhi) in support of this proposition. In this connection, he also referred to Chaturvedi and Pithisaria's commentary on Income-tax Law, Second edn. p. 2029. 5. Shri R.N. Bajoria, the learned representative for the assessee, on the other hand, supported the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough the language of section 217. He pointed out that in case an assessee does not file a statement under section 209A, interest will be charged on the amount equal to the assessed tax as defined in section 215(5) of the Act. This section defines 'assessed tax' as the tax determined on the basis of 'regular assessment' less tax deducted at source. Section 215(2) says that no interest will be charged on any tax which has been paid before the date of completion of the regular assessment. In other words, the intention is to charge interest on the unpaid tax from the end of the financial year under consideration. If any amount has been paid within the financial year, there is no question of charging interest thereon. Section 215(2) extends thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct the tax by the prescribed dates. If a person has paid the tax but not filed the statement, he cannot be said to be indebted to the exchequer. On the other hand, if a person files a statement but does not pay the tax, he remains a debtor and so he is liable to interest under section 215. The ITO is not clear in his order about the charging of the interest as he has not stated either the amount or the manner of computation thereof. He has given full credit for the entire advance tax paid by the assessee and so the assessee never remained a debtor to the Government either at the end of the financial year, much less on the date of the regular assessment. Hence, we agree with the conclusion of the Commissioner (Appeals) and uphold his order. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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