TMI Blog1992 (10) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 s. 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 appeal. 2. The ground of appeal of the assessee reads as under: "That the learned ITO and AAC have erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on as is referred to in sub-s. (3A) of s. 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-s. (4) or, as the case may be, sub-s. (3A) upto 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-s. (5) of s. 215." He submitted that though the interest is chargeable under s. 217(1A) for not sending the estimate referred in either s. 212(3A) or s. 209A(4), there was no condition for payment of the taxes. If the tax is not paid, the assessee becom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the assessee's petition under s. 154, he had the decision of the Tribunal, Calcutta Bench in his hands 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 Tribunal, 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 s. 218(2) r/w s. 221 of the Act. At the same time if the provisions of s. 217(1)(a) are read with ss. 209A(4) and 213(3A), it is possible to hold that the payment of tax is also necessary. Though we may or may not agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat 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-s. (1A) of s. 217 would be to read all the three requirements into that sub-section, viz., the requirement of an estimate of income, of an estimate of advance tax, and of a payment of the advance tax; with the result that, if any one of these three is shown to be in default, the levy of penal interest would be attracted. The view is attractive, and we are inclined to think that, in order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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