9911796707
TMI Blog2003 (11) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... 79,810 and also income from other sources amounting to ₹ 13,82,768, thus returning taxable income aggregating to ₹ 1,69,62,578. It was with regard to this income that the assessee sent a cheque dated 10th March, 1994 for ₹ 83,25,820 for advance tax on this income. However, as this cheque was returned unpaid, the cheque was finally cleared on 16th April, 1994 and a receipted challan was issued to the assessee on that day. The assessee, however, contended that since the cheque was deposited on 15th March, 1994, he is not liable to pay tax under sections 234B and 234C of the Act. It was in this background that the assessee filed a petition before the Authority for Advance Ruling (Authority, in short) seeking advance ruling on the following question: Whether the applicant is liable to interest under sections 234B and 234C in respect of tax of ₹ 83,25,820 paid vide cheque No. 11 45 02913 dated March 10, 1994? Hon'ble Authority for Advance Ruling, vide order dated 9th May, 1995 and for the detailed reasons set out in the order, gave the following ruling: On the stated facts of the case, the payment of ₹ 83,25,820 can be said to have been made at the earli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant, this ground of appeal raised by the appellant stands dismissed". Still aggrieved, the assessee is in further appeal before us. 5. Shri P.J. Pardiwalla, learned counsel, appeared for the assessee and Shri R.S. Sobnis, learned Departmental Representative, appeared for the revenue. Learned representatives have been conscientiously heard, orders of the authorities below, as indeed assessee's detailed paper-book, carefully perused, and applicable legal position duly considered. 6. It is no doubt true that under section 245S of the Act, the advance ruling pronounced by the Authority under section 245R is binding on the applicant who had sought it but then under section 245R(4) the Authority can pronounce its advance ruling only "on the question specified in the application". The question in this case, as reproduced earlier in this order, was "whether the applicant is liable to interest under sections 234B and 234C in respect of tax of ₹ 83,25,820 paid vide cheque No. 11 45 02913 dated March 10, 1994" which, in plain words, implies that the question before the Authority was whether or not the aforesaid amount of ₹ 82,25,820 paid by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ril, and, therefore, the provisions of sections 234B and 234C would apply, but then if the assessee is not at all liable to pay interest under the scheme of sections 234B and 234C, by including the aforesaid amount as advance tax paid or by not including the aforesaid amount as advance tax paid, the ruling cannot be interpreted to mean that, despite the undisputed position that the assessee is not liable to pay interest under sections 234B and 234C because there is no such liability even after treating the payment as having been made on 15th April, 1994, the assessee would still be liable to pay tax under sections 234B and 234C because of ruling given by the Authority. The Authority can pronounce its advance ruling only on the question before the Authority and in the present case the question was not on the applicability of sections 234B and 234C per se but only on inclusion of the sum of ₹ 82,25,820 in the computation for the purpose of sections 234B and 234C. The question, on which ruling was sought by the assessee, specifically referred to the applicability of sections 234B and 234C on the amount of ₹ 82,25,820. 8. Section 209(1)(d ) of the Act provides that, while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee's claim that it should be treated as having been paid before the end of financial year, as was the view of the Authority. However, we must also direct the Assessing Officer to compute the advance tax payable by the assessee, only on which interest under sections 234B and 234C can to be charged, as per the scheme of section 209 which, inter alia, requires 'tax deductible at source' to be reduced from the amount calculated as income-tax payable on estimated income. That is the scheme of the Act and there is nothing in the ruling given by the Authority which is contrary to the same. In fact we see no conflict in our upholding the action of the Assessing Officer in excluding ₹ 82,25,820 from payment made before the end of financial year, and in our directing the Assessing Officer to reduce tax deductible at source from the income- tax calculated on the estimated tax liability. These two things operate in mutually exclusive areas, though, at the end of the day, even if either of the assessee's plea is to be accepted, there cannot be any levy of interest under sections 234B or 234C of the Act, on the facts of this case. When the Authority itself states that "the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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