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TMI Blog2002 (6) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 interlinked and they are not happily worded in the sense that the questions did not display the real controversy which will be clear from the following facts: The assessment year is 1979-80. The assessee, who was liable to pay the advance tax, filed an estimate on September 13, 1978. The assessee estimated the payable amount at Rs. 14,18,506 and made the payment of Rs. 4,75,000 on September 15, 1978. It made another payment of Rs. 5,60,000 by way of second instalment on December 15, 1978. The assessee then filed a revised estimate in the month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a: "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). The Tribunal took a contrary view and held that the assessee would not be entitled to interest on the whole amount of Rs. 1,95,951 and would be entitled to have interest on only Rs. 1,40,951. Thus the order of the assessing authority was restored by the Tribunal. The assessee, being aggrieved by this, sought a reference and as a result the questions have been now referred to us. If the two questions are read together then alone the real controversy could be pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 are payable under sections 207 to 213. Therefore, it will be proper to see as to what kind of instalments are payable under sections 207 to 213. Section 207 speaks only about the liability to pay the advance tax while section 208 specifies the conditions of that liability. These two sections will not help us to understand the nature of the advance tax paid in instalments for which section 209 would play a material role. Section 209 provides guidance for computation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 and the advance tax payable by him on the current income calculated in the manner laid down in section 209. The sub-section further goes on to say that the assessee shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211. Sub-section (5) provides for a revised estimate as was the case with the present assessee. Under that, an assessee can send a revised estimate of the advance tax payable by him a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee 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 have already shown that such instalments have to accord with the estimate/ estimates or, as the case may be, the revised estimate sent under section 209A of the Act. This appears to be the only reason why the phrase "aggregate sum of any instalments of advance tax paid" is qualified by the words "payable under sections 207 to 213". In this view of the matter, it is clear that the Tribunal was absolutely right in allowing the appeal filed by the Revenue. Learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 also on the nature of the tax on which the interest was payable. The controversy was much wider but, in our considered opinion that decision does not apply to the present controversy at all. In Chandrakant Damodardas v. ITO [1980] 123 ITR 748 (Guj), which was relied on by learned counsel for the assessee, also the controversy was if the instalment was paid after the due date was the aggregate of such instalments if found in excess of the tax due liable to attract the int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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