TMI Blog2002 (6) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... Dated:- 2-6-2002 - Judge(s) : V. S. SIRPURKAR., N. V. BALASUBRAMANIAN. JUDGMENT The judgment of the court was delivered by V.S. SIRPURKAR J.- Two questions are referred to us at the instance of the assesses and under the directions of this court. They are: "1. Whether, on the facts and in the circumstances of the case, the assessee is entitled to interest under section 214 of the Income-tax Act, 1961, on the net refund amount determined with Rs. 1,95,951? 2. Whether, on the facts and in the circumstances of the case and having regard to the provisions of sections 208 to 219 of the Income-tax Act, 1961, a payment of Rs. 12,00,000 made on March 14, 1979, should be treated as advance payment of tax?" The two questions are inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be paid should be calculated as under: Advance tax payable as per estimate filed on March 13, 1979 Rs. 21,80,000 Less: Tax due Rs. 20,39,049 Balance Rs. 1,40,951 The assessing authority ordered the interest only on this amount of Rs. 1,40,951. The assessee contested this as, according to the assessee, it should have been paid the interest on Rs. 1,95,951 and for that purpose, the calculation should have been as per the following formula: "Total advance tax paid-Tax amount due = Refundable amount carrying interest under section 214 of the Act." The assessee, therefore, filed an appeal which was allowed on the basis of the decision in CIT v. Andhra Pradesh State Road Transport Corporation [1984] 148 ITR 184 (AP) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the excess amount, which is refundable and which also carries interest two components are contemplated by the section. The first component is the aggregate sum of instalments of advance tax paid during any financial year in which they are payable under sections 207 to 213; the second component is the amount of the tax determined on the regular assessment. When the first component exceeds the second component, the resultant amount would carry the interest. Now it will be seen that the first component is not the aggregate sum of the instalments paid during the financial year. This is qualified by the further words "in which they are payable under sections 207 to 213". Therefore, obviously the instalments should be only such instalments which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er clause (a) as accords with the statement in equal instalments on the dates applicable in his case under section 211. It is to be seen that the section directs to pay the advance tax in equal instalments but that payment has to be in accordance with the statement made under clause (a). This shows that it is not as if the assessee has to pay any amount of tax. The tax which he pays must be as per the statement that he gives. In our case, sub-section (4) would be more relevant because that sub-section contemplates the case of an assessee who is liable to pay the advance tax has more income than the income on which the advance tax payable by him is computed under section 209. Such assessees are required to send the estimate of current income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... none in this case. Therefore, obviously, it is not left to the sweet will of the assessee to pay any amount by way of advance tax and such advance tax has to be in accordance with the estimate or, as the case may be, the revised estimate sent by the assessee to the assessing authority. In this case also, in fact, such estimate was sent and in the revised estimate the assessee was liable to make the payment of Rs. 11,45,000. However, for the reasons best known, the assessee makes the payment of Rs. 12,00,000 which is excess payment by Rs. 55,000. Such excess amount would, therefore, not be coverable under section 214 as the larger component has to be the aggregate sum of the instalments which are payable under sections 207 to 213 and we hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision is of no help to the assessee particularly because it entirely differs on facts. It will be also seen that the statement of advance tax or, as the case may be, the estimate has to be made under Form No. 28A. This was correctly shown by the assessee. The assessee, however, paid the tax not in accord with the estimate but in excess thereof. Hence, the assessee could not be said to be entitled to earn interest on that excess amount. Learned counsel for the assessee also relied on the Supreme Court decision in Modi Industries Ltd. v. CIT [1995] 216 ITR 759. However, we do not find anything which could help the assessee. The controversy in that case was in respect of the period for which the interest was payable under section 214 and al ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
