TMI Blog1993 (2) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the assessee on other points, the Assessing Officer in his order under section 251/154 of the Income-tax Act, 1961 included this amount in the income of the assessee. The assessee preferred an appeal against this order. 3. The learned DC (A) was of the opinion that when the assessee did not object to the observation of the Assessing Officer in this respect in the appeal originally filed he could not raise objection in this appeal. He relied on the decision of the Hon'ble Patna High Court in the case of Ramanand Singh Co. v. CIT [1987] 164 ITR 78. In the context of the assessee's other objections against charging of interest under sections 139(8), 217 and 220 he was of the view that they were rightly charged and no interference w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt there was levy of penalty, though erroneously computed, whereas, in the present case, there was no levy on this income for which the subsequent rectification was made. In my view, this is a pertinent difference and it makes a distinguishable feature from the case which was before the Hon'ble High Court. When the income was subsequently included the assessee raised objection by filing the impugned appeal. Hence, in my view, the learned DC (A) wrongly decided the issue rejecting the assessee's contention. However, as he did not dispose of the matter on merit I restore this point to his file for readjudication with a direction to him to pass a fresh order after giving due opportunity to the parties. 6. After considering the submissions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest is compensatory in nature. In the headnotes of the decision the following observation has been quoted : " Where the advance tax duly paid covers the entire amount of tax assessed, there is no question of charging the registered firm with interest even though the return is filed by it beyond the time allowed, regard being had to the fact that payment of interest is only compensatory in nature. As the entire amount of tax is paid by way of advance tax, the question of payment of any compensation does not arise." 8. The above observation makes it clear that there is only one tax i.e., income-tax. It is payable in advance or deductible at source or payable under section 140A(3). If the advance tax is sufficient to cover the tax p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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