TMI Blog2005 (2) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... t of advance tax that the assessee had committed any default by virtue of which, the assessee became liable to be charged interest under section 215 – Tribunal was right in law in deleting the interest levied under section 215 - - - - - Dated:- 23-2-2005 - Judge(s) : D. A. MEHTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by D.A. Mehta J.- The following question of law has been referred by the Income-tax Appellate Tribunal, Ahmedabad Bench, under section 256(1) of the Income-tax Act, 1961 ("the Act"), at the instance of the Commissioner of Income-tax, Baroda: 'Whether the Appellate Tribunal is right in law and on facts in deleting the interest levied under section 215 of the Act when the additions made b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to valuation of closing stock. However, in relation to levy of interest under section 215 of the Act, the Tribunal held that the same was wrongly charged and it was not proper to saddle the assessee with such additional liability. Mr. M.R. Bhatt, learned senior standing counsel, appears on behalf of the applicant-Revenue and has been heard. Though served, there is no appearance on behalf of the respondent-assessee. Mr. Bhatt assailed the impugned order of the Tribunal stating that the provisions of section 215(1) of the Act stipulate that the Assessing Officer is obliged to charge interest once the assessed income is more than the stipulated percentage. In other words, according to learned counsel, once the difference between the estima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee under section 140A of the Act for such year. Thereafter, the assessee is required to ascertain which of the two figures exceeds the other, viz., whether the latest assessed income is higher than the latest returned income or other way round and taking that as a base, the assessee is required to work out the current income and the liability to pay advance tax. If the aforesaid scheme is borne in mind, it is apparent that unless and until the Revenue is in a position to state that either of the figures adopted for the purposes of computing the current income and the advance tax payable is incorrect in any manner whatsoever, it will not be possible to accept the contention of the Revenue that levy of interest under section 21 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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