TMI Blog1993 (10) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... f law arise for the opinion of this court out of the order dated June 17, 1980, passed by it in I. T. A. No. 503/(Ahd.) of 1979. Facts: This reference relates to the assessment year 1973-74. On the completion of regular assessment, the Income-tax Officer charged interest amounting to Rs. 648 under section 139(8) of the Act for the delay on the part of the assessee in furnishing the return of total income. While calculating the interest payable under section 139(8) of the Act, the Income-tax Officer took into account payments of amounts which were described as advance tax and allowed credit for the amounts of Rs. 750, Rs. 25,000 and Rs. 24,989, respectively, paid on March 23, 1973, July 19, 1973, and April 15, 1973. While recomputing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the record and in that view of the matter, allowed the appeal filed by the assessee. The Revenue, being aggrieved by the abovereferred order, filed an appeal before the Tribunal. The Tribunal noted that there is some controversy on the question whether the payments which have not been strictly made by the dates specified in section 211 of the Act can be regarded as "advance tax" or not, but there is no controversy that for the purpose of sections 211 and 215, etc., the payments made by the assessee after the close of the relevant financial year cannot be regarded as "advance tax". In that view of the matter, the Tribunal held that while the sum of Rs. 750 paid by the assessee on March 23, 1973, during the financial year 1972-73 shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n whether the payments made by the assessee after the close of the relevant financial year could be regarded as "advance tax" or not would depend upon the answer to the question as to whether with a view to rectifying any mistake apparent from the record, the regular assessment order in which the Income-tax Officer had charged interest amounting to Rs. 648 under section 139(8) of the Act could have been amended or not. Under section 154 of the Act rectification would be permissible when there is a mistake apparent from the record and not when two interpretations are reasonably possible on the question of the mistake sought to be rectified. In the case of T. S. Balaram, ITO v. Volkart Brothers [1971] 82 ITR 50, the Supreme Court considered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Such income is hereinafter in this Chapter referred to as 'income subject to advance tax', and such tax is hereinafter in this Chapter referred to as 'advance tax'." Thus, in view of the provisions of section 207 of the Act, tax was payable in advance in accordance with the provisions of sections 208 to 219 of the Act. Section 208 of the Act required that advance tax was payable during the financial year. So also, section 209 of the Act provided the manner of computation of advance tax to be paid by the assessee in the financial year. In view of the provisions of sections 207 to 219 of the Act, the term "advance tax" has a clearly defined meaning and cannot be equated with "tax paid in advance". No controversy seems to have arisen o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tified by the Income-tax Officer was apparent on the record, as not only was it an obvious and patent mistake, but it did not require to be established by a long-drawn process of reasoning on points on which there might conceivably be two opinions. The contention that the assessee is liable to pay interest for a period from the specified date to the filing of the return and, therefore, payment of tax made up to the specified date should be regarded as "payment of advance tax" and thus, two reasonable opinions being conceivable on the interpretation of the term "advance tax", the Income-tax Officer could not have exercised the powers under section 154 of the Act, has no substance. The reference to the term "specified dates" is made in sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the meaning of sections 207 to 213 of the Act and the said amount could not have been taken into consideration while calculating interest under section 139(8) of the Act. In view of the above position, we are of the opinion that, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the payments made by the assessee after the end of the financial year 1972-73 could not be regarded as "advance tax" for the purpose of calculating the interest chargeable under section 139(8) of the Act. Therefore, the second question referred to us is also answered in the affirmative, i.e., in favour of the Revenue and against the assessee. The reference stands disposed of accordingly, with no order as to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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