9911796707
TMI Blog1992 (6) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... on 11-9-1986. The assessee purporting to revise this estimate filed a fresh estimate of advance tax and paid further sum of Rs. 1,52,856 on December 9, 1986 as second instalment of advance tax. The above estimate was again revised and third instalment of advance tax of Rs. 2,15,357 was paid on March 19, 1987. On regular assessment, the total amount of tax payable was found to be Rs. 4,38,180. According to the revenue, the assessee should have paid Rs. 1,46,060 as each instalment of advance tax. For failure to pay the above amount, the assessee was asked to pay interest under section 216 of the Act. 3. The assessee challenged the levy in appeal before the CIT(Appeals) and urged that he was not liable to pay interest under the above section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en invoked and is admittedly not applicable. The other sub-clause (a) has been applied. For applying the aforesaid sub-clause it has to be shown that the assessee " under estimated " the advance tax payable and thereby reduced the amount payable in either of the first two instalments. Mere reduced or short payment of first two instalments would not attract application of the provision. The short payment should follow and be consequences of " under estimate ". The words " under estimation " mean --- an estimate below the truth or which is too low. It has to be under or lower than required by the statute. An estimate which is made in accordance with requirements of law cannot be treated as " under estimate ". It is, therefore, to be seen whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the date on which the last instalment of advance tax is payable by him, send to the Income-tax Officer an estimate of-- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211 as have not expired, by instalments which may be revised accordingly to sub-section (5) : " It is clear from the above sub-section that statement of advance tax as per scheme of the Act has to be revised only before the date on which last instalment of advance tax is payable by the assessee. The said statement is not to be revised at the time of pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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