9911796707
TMI Blog1986 (4) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... -------------------------------------------- Due date of Date of tender of Date of encashment Amount Rs. instalment at the counter of cheque cheque ---------------------------------------------------------------------------- 15-9-1975 13-9-1975 25-9-1975 18,44,215 15-12-1975 12-12-1975 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals), therefore, came to the conclusion that the action of IAC in not allowing interest under section 214 on excess advance tax paid was a mistake apparent from the record which ought to have been rectified. The revenue is aggrieved and has, therefore, come up in present appeal before us. 4. The learned departmental representative, Shri Tej Prakash, relying on the rulings of Hon'ble Andhra Pradesh High Court in the case of Kangundi Industrial Works (P.) Ltd. v. ITO [1980] 121 ITR 339 and the Hon'ble Kerala High Court in the case of A. Sethuraman v. CIT [1980] 122 ITR 587 submitted to us that where the advance tax paid by the assessee was after due dates fixed for instalments, the assessee is not entitled to interest under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under section 214 on the excess advance tax paid, no question of law arises for referring to the Hon'ble High Court. He, therefore, submitted that the direction of the Commissioner (Appeals) the assessee-company should be allowed interest under section 214 on the excess advance tax paid as a mistake apparent from the record was perfectly justified and there is no merit in the appeal filed by the revenue. 6. We have carefully considered the rival submissions. At the outset it would be necessary to point out that the Board by F. No. 12/80/64-IT (B), dated 1-6-1965 had issued a circular, the relevant extract from which is as follows : "According the rule 79(1) (a) of the Central Treasury Rules, a treasury is authorised to accept only chequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 965] 56 ITR 198 and Ellerman Lines Ltd. v. CIT [1971] 82 ITR 913 that the circulars issued by the Board are binding on the authorities employed in the execution of the Act. Viewed in this context, it is not under dispute that the Income-tax Department had accepted the payment on account of the advance tax by cheques drawn on local banks a few days before the actual date of the payment of the instalments and the ITO/IAC, in accordance with the instruction of the Board, were supposed to send the cheques to the Reserve Bank or State Bank, as the case may be, immediately or on the same day or on the next working day for encashment in which event the date of presentation of the cheques to the State Bank or the Reserve Bank was the date of paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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