TMI Blog1981 (8) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the ld. AAC erred both in fact and in law. 4. For that the decision of AAC on the above point may be reversed. 2. The relevant para of the impugned order of AAC is usefully reproduced below: "6. The appellant contends that all payments of advance-tax made within the Financial year should be given credit for before calculating any interest u/s. 139(8). In the assessment order, credit was given for this purpose only for the instalments of advance-tax which had been paid on the due dates. The appellant s contention must be held to be correct and I DIRECT the ITO to give credit for advance-taxes paid within the Financial year before charging interest u/s. 139(8). He will please give relief in quantum of interest." 3. The appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P), in which inter alia, it was held that when the assessee committed default in making belated payment of advance-tax, he exposed himself to penalty proceedings and consequently, forfeited his right to claim interest u/s. 214. On behalf of the Revenue, the ld. Deptl. Rep. also relies on the ratio of the decision of the Hon ble Kerala High Court in the case of A. Sethumadhavan vs. CIT (1980) 122 ITR 587 (Ker) in which it was held that the assessee is not entitled to interest u/s. 214 on excess amount of advance-tax paid after the due dates. Reliance is also placed on behalf of the Revenue, on the decision of the Hon ble Bombay High Court in the case of Modella Woollens Ltd. 1978 CTR (Bom) 227. It is submitted on behalf of the Revenue that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified dates prescribed u/s. 211. Some of the advance-tax payments were after such specified dates. The ITO, for the purpose of calculating the above interest ignored the advance-tax payments paid by the assessee after the due dates. Neither of the parties has cited any direct authority on the point. The case laws relied on by both the sides relate to the question of paying of interest u/s. 214. In both the cases relied on by the Revenue i.e. in the cases of Kangundi Industrial Works (P) Ltd. and A. Sethumadhavan, the courts have held that when the assessee committed default in making belated payment of advance-tax, he exposed himself to penalty proceedings and consequently forfeited his right to claim interest u/s. 214 and that the liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on regular assessment, as reduced by the advance-tax, if any, paid, and any tax deducted at source. Since advance-tax has not been defined, for the purpose of calculation of interest u/s. 139(8), we are of the opinion that advance-tax paid within the specified dates only could be taken into account for the purpose of quantification of tax payable by the assessee while quantifying interest payable by the assessee u/s. 139(8). In his impugned order, the AAC has not given any reason or material for giving the above direction to the ITO. In fact, there was no discussion made why direction was required to be given. In view of what we have discussed above, we are of the opinion that the order of the AAC cannot be sustained. Accordingly, his order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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