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TMI Blog1984 (4) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... 54 of the Act in order to rectify a mistake which, according to him, was apparent from the record. In the said notice the ITO did not state that interest under section 217 was sought to be charged. A perusal of the order passed by the ITO under section 154 would show that the ITO wanted to rectify his order inasmuch as he had not included certain income from the branch offices in the original assessment. The ITO after allowing the assessee an opportunity of being heard, passed an order under section 154 by which he added a sum of Rs. 18,080 being interest income from the branch offices to the originally assessed income. The ITO also charged interest under section 217. 3. The assessee preferred an appeal before the Commissioner (Appeals) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was chargeable. The learned departmental representative vehemently urged that the ITO committed an error in not charging interest under section 217 while making the original assessment and that this mistake was a glaring mistake which could be rectified by invoking the provisions of section 154. For this proposition he relied on the decision of the Calcutta High Court in the case of Singho Mica Mining Co. Ltd. v. CIT [1978] 111 ITR 231 and that of the Karnataka High Court in the case of CIT v. Executors of the Estate of Late H.H. Rajkuverba Dowager Maharani Saheb of Gondal [1978] 115 ITR 301. 5. The learned counsel for the assessee, on the other hand, contended that the Commissioner (Appeals) was justified in cancelling the interest char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 154 when he is satisfied that there must be a self-evident mistake apparent from the record which does not require investigation into the facts or arguments. According to the learned counsel for the assessee, charging of interest or waiving or reducing of interest under section 217 is a matter which requires investigation into the circumstances of the respective case of the assessee and to take a decision as to whether the case falls within any of the clauses of rule 40. He, therefore, submitted that the ITO was wrong in invoking the provisions of section 154 for charging interest under section 217, more so, when there was no mention regarding charging of interest under section 217 in the notice issued by the ITO under section 154. He als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the Institute of Cost and Works Accountants is a statutory body constituted under the provisions of the Cost and Works Accountants Act, 1959, and the institute's properties are held for charitable purposes within the meaning of section 2(15) of the Act. The objects of the institute are of general public utility and it has also been granted registration by the Commissioner under section 12A of the Act, accepting that the institute is one to which the provisions of section 11 of the Act are applicable. The institute has also been notified under clause (23A) of section 10 of the Act by the Central Government. He urged that the case of the assessee from the beginning is that it is not liable to pay tax under the Act in respect of any part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of CIT v. Bar Council of Maharashtra [1981] 130 ITR 28. It was, therefore, submitted that when the assessee was entitled to exemption in respect of its income, there was no question of filing of estimate under section 212 for payment of advance tax. 6. We have heard the submissions of both the parties and considered the facts on record. Interest is payable under section 217(1) where an assessee fails to submit the estimate of advance tax under section 212. Sub-section (2) of section 217 provides that the provisions of sub-sections (2), (3) and (4) of section 215 shall apply to interest payable under this section as they apply to interest under that section. Then again, under section 215(4), the ITO is empowered to reduce or waive the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are of the opinion that the ITO was not justified in charging interest under section 217 by invoking the provisions of section 154. The cases relied on by the learned departmental representative, as pointed out by the learned counsel for the assessee, are distinguishable on facts, inasmuch as in those cases, their Lordships were concerned with the power of the Commissioner to revise the assessment in which the ITO failed to charge interest under section 217. 7. We also find sufficient force in the submission of the learned counsel for the assessee that there was enough cause for non-filing of estimate under section 212 inasmuch as the assessee was under the bona fide belief that income earned by it was eligible for exemption under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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