TaxTMI 
TaxTMI 
1984 (12) TMI 47
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....n the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that no interest under section 217(l A) is leviable even though the filing of estimate as specified under section 212(3A) and the payment of last instalment of advance tax was beyond the time specified under the Act ? " The reference arises out of an order of assessment made on the assessee for the assessment year 1975-76. In demanding the tax, the Income-tax Officer also demanded interest under section 217(1A) of the Act to the extent of Rs. 25,740. The assessee appealed to the Appellate Assistant Commissioner against the levy of interest under section 217(1A) of the Act. The Appellate Assistant Commissioner found that the appeal was not maintain....
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....ing, the Tribunal allowed the appeal. It seems to us that the Tribunal was justified in taking that view. Sub-sections (1A) and (2) of section 217 of the Act which were introduced by the Finance Act, 1969, with effect from April 1, 1970, read: Section 217 : "(1A) Where, on making the regular assessment, the Income-tax Officer finds that any person who is required to send an estimate under sub-section (4) of section 209A or any such person as is referred to in subsection (3A) of section 212 has not sent the estimate referred to therein, simple interest at the rate of twelve per cent. per annum from the I St day of April next following the financial year in which the advance tax was payable in accordance with the said sub-section (4) or, a....
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....ssment, shall be levied on the assessee upon the amount by which the advance tax paid by him falls short of the assessed tax. The previous year in the case of the assessee ended on June 30, 1974. The last instalment was due on December 15, 1974. The assessee filed the estimate under section 212(3A) of the Act on December 16, 1974. He paid the entire tax upon that estimate on January 22, 1975, i.e., before the 1st day of April next following the financial year in which the advance tax was payable. The question is whether the tax so paid by the assessee could be taken into consideration for the purpose of levying interest under section 217(l A) of the Act. Reading the provisions of section 217(l A) along with the provisions of s. 215(2) of ....