TMI Blog1997 (12) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... DRI. JUDGMENT As many as 19 questions have been raised in these appeals. The Tribunal has more or less come to correct conclusions on most of the questions. There are three questions which have been debated at some length before us. The questions are (see [1986] 160 ITR 217, 221, 222) : "2. Whether the Appellate Tribunal was justified in law in holding that in working out the amounts deductible in terms of rule 19A(3), borrowed monies and debts due must mean borrowed monies and debts due and payable ? 6. Whether the Appellate Tribunal was justified in law in holding that the technical fees paid to Warner Lambert Pharmaceutical Company of U.S.A. of Rs. 51,264 and Rs. 1,56,777 for the assessment years 1970-71 and 1971-72, respectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Tribunal have also taken the same view. It is contended on behalf of the assessee that payments of advance tax are made pursuant to the estimates made in accordance with the books of the assessee. At the end of the accounting year when the balance-sheet is prepared, according to the books of the assessee, it is discovered that payments made towards the advance tax are in excess of the tax liability, According to the books, the assessee is entitled to treat the difference, to which it is entitled by way of refund, as an asset. The authorities below have held that the right to refund will arise only after assessment is made and till then it cannot be treated as an asset of the assessee. Payment of advance tax is a statutory liability an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlier mentioned which was in excess of the tax payable by it for each of these years. The assessment only particularised the amounts ; it did not create the right, for the right came into existence as soon as according to the relative Finance Act it became ascertainable that the tax deducted at source or treated as paid on its behalf had exceeded the tax payable. That right, therefore, was an asset contemplated in section 7 of the Act of 1956." According to this judgment, the right of the assessee to get refund arose on the very first day of tile assessment year. Applying this principle, it was held in the case of Modi Industries Ltd. v. CIT [1995] 216 ITR 759 (SC), that interest was payable on advance tax from the first day of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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