TMI Blog1984 (6) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... edit for advance tax paid. Later, the ITO noticed that the assessee had filed the advance tax estimate on 24-8-1979, that is, very much later than the due date for the submission of such an estimate, and, therefore, the tax paid in pursuance of the same should not have been treated as advance tax and credit given in respect thereof, while charging interest under section 139(8). As, according to the ITO, the advance tax estimate filed on 24-8-1979 was an invalid estimate, interest under section 139(8) should have been calculated without taking into account the tax paid in pursuance of the said estimate and he, therefore, rectified his earlier order under section 154 with a view to enhancing the interest under section 139(8) to Rs. 64,240. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the ITO under section 154 charging a higher amount of interest was passed only with a view to rectifying the mistake in the calculation of the said interest under section 139(8) in the original order, which was apparent from the record. It was submitted on behalf of the department, that tax paid in pursuance of an invalid estimate should not have been treated as advance tax and by treating the same as advance tax in the original assessment, the ITO had wrongly given credit for it while calculating the interest under section 139(8). It was urged that this being a mistake apparent from the record, there was no bar against its rectification under section 154 when the ITO actually found out the mistake. The cancellation of the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stimate filed by the assessee was an invalid estimate, since it was not filed within time, and, therefore, the tax paid in pursuance of the same, did not amount to advance tax and, accordingly, the same should not have been taken into account while calculating the interest leviable under section 139(8) as per the provisions of the section. It is not as if that the tax paid in pursuance of the estimate filed on 24-8-1979 had been refunded to the assessee treating it as something other than advance tax. To all intents and purposes the same has been adjusted against the tax due from the assessee on completion of the assessment, according it the same treatment as would have been accorded to any normal payment of advance tax. Since there can be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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