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2007 (4) TMI 260 - ALLAHABAD HIGH COURTBusiness Expenditure – Advance tax - held that – amount paid to managerial personal on account of gratuity paid, reimbursement of medical expenditure and HRA not hit by provision of 40A(5), allowed – Amount paid under section 43B before filing of return was allowed by CIT(A) and ITAT confirmed - the amendment introduced by Finance Act, 1987, to section 43B was merely of clarificatory nature and applicable with retrospective effect - The interest has been levied under section 216 of the Act on the ground that the assessee had under estimated the income under section 209A and section 212 of the Act. Under section 209A of the Act, the first two instalments were to be paid in accordance with the income of the previous year which the assessee has complied with. So far as the third instalment is concerned, the assessee has paid the advance tax according to the revised estimate and there is no violation of the provisions of section 209A of the Act. – interest not to be charged u/s 216
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