TMI Blog1978 (12) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the payment of advance tax of Rs. 4,200 the assessee was given credit for interest of Rs. 1,313 under s. 214 of the Act. The Addl. CIT, Madras, purported to revise the order of the ITO under s. 263. He took the view that as the amount of advance tax was not paid in pursuance of a valid estimate since the said estimate and payment had to be made on or before March 1, 1965, under the law applicable to the relevant assessment year, the order of the ITO granting interest under s. 214 and omitting to charge interest under s. 217 was erroneous in so far ,as it is prejudicial to the interest of the revenue and, therefore, issued a showcause notice to the assessee. By his order dated June 24, 1971, the Addl. CIT held that the payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 256(1) of the Act for the opinion of this court : " Whether, on the facts and in the circumstances of the case, it had been rightly held that the assessee was entitled to the grant of interest of Rs. 1,313 due, under section 214 of the Act for the assessment year 1965-66? " Mr. J. Jayaraman, the learned counsel for the revenue, contends that s. 214 will have no application to the present case because that section will apply only to an advance tax paid in accordance with the requirements of ss. 207 to 213, namely, advance tax on or before March 1, 1965, and the amount paid on March 15, 1965, by the assessee cannot be said to be an advance tax as contemplated by the statute and, therefore, interest cannot be granted in respect of the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e passed the order setting aside the order of the ITO granting interest and directing him to recover the amount he also stated that no proceedings were necessary for collecting interest under s. 217 of the Act. Section 217 reads as follows : " 217. Interest payable by assesse when no estimate made.--(1) Where, on making the regular assessment, the Income-tax Officer finds that any such person as is referred to in sub-section (3) of section 212 has not sent the estimate referred to therein, simple interest at the rate of four per cent. per annum from the 1st day of April next following the financial year in which the advance tax was payable in accordance with the said provisions up to the date of the regular assessment shall be payable by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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