TMI Blog1992 (10) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... on 8-12-1987. According to the assessee, the interest could not be charged as the assessee had furnished the estimate of advance tax. The Assessing Officer held that there was no mistake apparent from the record. He accordingly dismissed the petition of the assessee. (iv) When the matter was taken to the AAC, he held that the provisions of section 209A(4) required filing of an estimate of advance tax and payment of amount of advance tax in accordance with the estimate. He held that as in the circumstances of the case, the advance tax payment was not made according to the estimate furnished, the default was clear and levy of interest was mandatory. He accordingly confirmed the order of the Assessing Officer. The assessee has filed this app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egular assessment, the Assessing Officer finds that any person who is required to send an estimate under sub-section (4) of section 209A or any such person as is referred to in sub-section (3A) of section 212 has not sent the estimate referred to therein, simple interest at the rate of fifteen per cent per annum from 1st day of April next following the financial year in which the advance tax was payable in accordance with the said sub-section (4) or, as the case may be, sub-section (3A) up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax paid by him falls short of the assessed tax as defined in sub-section (5) of section 215." He submitted that though the interest is chargeabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 212(3A) of the Act. He submitted that the only decision available is in Bengal Electric Lamp Works Ltd.'s case When the Assessing Officer passed his order rejecting the assessee's petition under section 154, he had the decision of the ITAT Calcutta Bench in his hand and he was bound to follow the same. 6. We find ourselves in agreement with the Departmental Representative. There is no doubt that there is only one direct decision of the ITAT, Calcutta Bench, on this issue. The only decision on the merits of the case is in favour of the assessee. It is possible to hold a view that a person may file only an estimate and need not to pay the tax. That person may be proceeded under section 218(2) read with section 221 of the Act. At the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance tax, is plausible. But, taking a closer view of sub-section (1A) of section 217, we should give enough weight and significance to the expression estimate referred to therein, which would take us back to sub-section (3A) of section 212. Under that sub-section, it is clear that the estimate consists of : (1) an estimate of the current income ; and (2) an estimate of the advance tax, coupled with (3) a payment of the advance tax. Therefore, counsel for the revenue contends -- we think with at least equal, if not greater, plausibility -- that the reasonable view to take as to the scope and amplitude of sub-section (1A) of section 217 would be to read all the three requirements into that sub-section, viz.', the requirement of an estimat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
