TMI Blog2003 (11) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... income that the assessee sent a cheque dated 10th March, 1994 for Rs. 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 Rs. 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 Rs. 83,25,820 can be said to have been made at the earliest only on 15th April 1994, and, therefore, the applicant is liable to interest under sections 234B and 234C of the Act. 4. Armed with this ruling from the Hon'ble Authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 Rs. 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 Rs. 82,25,820 paid by the assessee vide cheque dated 10th March, 1994, was to be taken into account in computation of interest on delay and deferment of advance tax payments, as advance tax paid. The Authority decided this issue against the assessee by holding that "On the stated facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpreted 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 Rs. 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 Rs. 82,25,820. 8. Section 209(1)(d) of the Act provides that, while computing advance tax payable by the assessee, the income-tax calculated on the estimated income of the assessee is to be reduced by "the amount of income-tax which would be deductible or collectible at source during the said financial year under any provision of this Act from any income (as computed before allowing any deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, 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 sec no conflict in our upholding the action of the Assessing Officer in excluding Rs. 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 provisions of sections 234B and 234C would apply and the applicant would be liable to pay interest in accordance with these provisions", there could not have been any reason for the CIT(A)to uphold levy of interest under sections 234B and 234C which was not at all leviable 'in accordance with the provisions of sections 234B and 234C'. 11. For the detai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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