TMI Blog1998 (3) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Act, 1961 ?" The facts of the case giving rise to the above controversy briefly stated are as follows : The assessee is a limited company. The assessment year involved in this reference is 1975-76, the relevant previous year being the year ending June 30, 1974. While making the assessment of the income of the assessee for the above assessment year, the Income-tax Officer levied interest under section 217 of the Income-tax Act, 1961 (the Act). The Commissioner of Income-tax (Appeals) rejected the appeal of the assessee in so far as it pertained to levy of interest under section 217 on the ground that no such appeal was provided. The assessee appealed to the Income-tax Appellate Tribunal against the above decision of the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of advance tax. It was contended by the assessee that the notice issued by the Income-tax Officer under section 210 of the Act being based on the estimate filed by the assessee under section 212(3A) it was bad in law and hence no interest was leviable under section 217 of the Act. These contentions were rejected by the Tribunal as the Tribunal was of the opinion that notice under section 210 based on the assessee's estimate of income filed under section 212(3) of the Act was a valid notice and hence there was no infirmity in the action of the Income-tax Officer levying interest under section 217 of the Act. Mr. J. D. Mistry, learned counsel for the assessee, submits that the notice issued by the Income-tax Officer under section 210 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following the financial year in which the advance tax was payable in accordance with the said sub-section up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax paid by him falls short of the assessed tax as defined in sub-section (5) of section 215. (2) The provisions of sub-sections (2), (3) and (4) of section 215 shall apply to interest payable under this section as they apply to interest payable under that section." "Assessed tax" has been defined in sub-section (5) of section 215 as follows : "(5) In this section and sections 217 and 273, 'assessed tax' means the tax determined on the basis of the regular assessment (reduced by the amount of tax deductible in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3A) In the case of any assessee who is required to pay advance tax by an order under section 210, if, by reason of the current income being likely to be greater than the income on which the advance tax payable by him under section 210 has been computed or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income (which shall be estimated by the assessee) exceeds the amount of advance tax demanded from him under section 210 by more than 33-1/3 per cent. of the latter amount, he shall, at any time before the date on which the last instalment of advance tax is due from him, send to the Income-tax Officer an estimate of-- (i) the current income, and (ii) the advance tax payable by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Officer only in respect of a person who has been previously assessed by way of regular assessment under the Act requiring him to pay advance tax determined in accordance with the provisions of sections 207, 208 and 209 of the Act. Section 209 deals with the computation of advance tax. It provides : "209. Computation of advance tax.--(1). . . . (a) (i) his total income of the latest previous year in respect a which he has been assessed by way of regular assessment shall first be ascertained ; (ii) the amount of capital gains and income referred to in sub-clause (ix) of clause (24) of section 2, if any, included in such total income shall be deducted therefrom, and on the balance, income-tax shall be calculated at the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (3A) of section 212 is applicable only to an assessee who is required to pay advance tax by an order under section 210 of the Act and section 210 read with section 209 of the Act contemplates in the case of an assessee who has been previously assessed by an order by the Income-tax Officer by way of regular assessment under this Act, direction to pay advance tax determined on the basis of his total income of the latest previous year in respect of which he has been assessed by way of regular assessment. In the instant case, admittedly, by the notice under section 210, the Income-tax Officer directed the assessee to pay advance tax not on the basis of his total income of the latest previous year in respect of which he had been assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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