1989 (3) TMI 27

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..... id on December 30, 1970, and March 29, 1971, respectively, should be construed as 'sums paid in advance under Chapter XVII-C' within the meaning of the Explanation to clause (i) of the said section ?" The reference relates to the assessment year 1971-72. The dispute is about the payment of advance tax and liability to pay penalty for failure of payment of advance tax. The Tribunal has found that the assessee had made payments of advance tax on December 30, 1970, and March 29, 1971. The contention of the Department before the Tribunal was that the accounting year of the assessee ended on the day of Diwali and, therefore, advance tax for the assessment year 1971-72 was payable by the assessee on June 15, 1970, September 15, 1970, and Decem .....

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..... the section. The argument adopted by the Department, if accepted, may even mean that payments made before those dates (and not on these dates) will not be payments of advance tax. The argument is plainly illogical. All the payments were made by the assessee within the financial year 1970-71 and long before the filing of the return. All these payments were, therefore, payments of advance tax and the assessee was clearly entitled to credit of these payments while determining the amount of assessed tax for calculating the amount of penalty leviable under section 271(1)(a) of the Act. In the demand notice issued to the assessee, the entire amount paid was treated as advance tax paid (and in our opinion rightly) from the tax found payable by the .....

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..... law has been referred to us by the Tribunal : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that in computing the penalty leviable under section 273(a) of the Income-tax Act, 1961, the two sums of Rs. 8,433 each paid on December 30, 1970, and March 29, 1971, respectively, should be construed as taxes actually paid during the financial year immediately preceding the assessment year under the provisions of Chapter XVII-C, within the meaning of clause (i) of the said section ?" This question relates to the assessment year 1971-72. We answer the question in the affirmative and in favour of the assessee. BHAGABATI PRASAD BANERJEE J. -I agree.    
Case laws, Decisions, Judgemen .....

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