TMI Blog1994 (9) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... n sustaining the levy of interest under section 139(8) for period beyond the date of actual filing of the return viz., 25-6-1990. That the voluntary return filed by the assessee on 25-6-1990 was to be taken as the actual date of filing the return for all the provisions of the Income-tax Act." 3. Briefly the facts are that the assessee in this case filed the returns of income for the assessment years under consideration on 25-6-1990. No notice under section 139(2) or under section 148 was issued and served upon the assessee calling for the returns of income for the above assessment years. Since the returns were filed beyond the normal period allowed under section 139(1), notices under section 148 dated 15-3-1991 were issued subsequently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax, Amritsar, who vide his order dated 17-11-1993 has directed that interest chargeable under sections 139(8) and 215/217 for the assessment years under consideration is reduced to 50% and the balance amount of interest if recovered should be refunded to the assessee. He accordingly submitted the assessee having once availed of the provisions of section 273A, the appeals filed by the assessee challenging the action of the Assessing Officer on the same issue were incompetent and for that purpose the Ld. DR relied on the order of this Bench dated 11-6-1993 in the case of Akhara Sangalwala v. ACIT In ITA Nos. 1373 to 1381/Asr./1992. 4.1 Sh. B.R. Abrol, Advocate, learned representative of the assessee, on the other hand submitted that obje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 221, the interest payable by the assessee under section 139(8) is only compensatory in nature and since the assessee has paid the entire tax due under section 140A on the dates when the returns were filed, the interest should be charged only upto the date of filing of the returns and not upto the date of the regular assessments under section 143(3), read with section 147(a)/148. 6. Sh. Makkar, Ld. DR supported the order of the Dy. CIT(A) and further submitted that the provisions of section 139(8), read with section 147 are quite clear and the departmental authorities were perfectly justified in charging the interest upto the date of assessments, which were completed under section 147, read section 143(3). 7. We have considered the rival ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder passed by the Commissioner under section 273A would be final and it shall not be called in question by any Court or law or any other authority. In the present case, the Commissioner while passing order under section 273A has directed that interest chargeable from the assessee should be reduced to 50% and this finding of the CIT is final and is not challenged by the assessee in these appeals. The ground taken by the assessee in these appeals is that interest is chargeable under section 139(8) only upto the date of filing of the returns i.e., 25-6-1990 and not upto the date of framing of the regular assessments under section 143(3) read with section 147(a). Accordingly, we will reject the preliminary objection taken by Sh. Makkar, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be submitted by him. If he does not submit the return within the prescribed time then he is made liable to pay interest with reference to the assessed amount of tax. However, the question, which is before us for consideration is as to what should be the interest chargeable in the case of the assessee. It has been held by the Hon'ble Gauhati High Court in the case of River Valley Tea Co. (P.) Ltd. v. Agricultural ITO [1974] Tax LR 805, 811 (Gauhati that in case the assessee submits a delayed return interest is to be calculated upto the date of submission of the return. However, in a case where no return is furnished and on that account the assessment is framed under section 144, interest is to be calculated upto the date of such assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due tax within time but pays a part of the tax within the financial year, the same has to be taken into account for charging interest under section 215(1). 9. Applying the analogy of the above interpretation of section 215 to section 139(8), we will hold that although strictly the payment made under section 140A in relation to all the three assessment years on the date of filing the returns i.e., 25-6-1990, cannot be considered as advance-tax, but they can be considered as payment made 'or otherwise' in terms of section 215(2) - and also keeping in view the fact that interest charged under section 139(8) or under section 215 is held to be compensatory in nature by the Hon'ble Supreme Court in the case of Ganesh Dass Sreeram as well as Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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