TMI Blog1992 (2) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 1,25,000 and tax payable thereon at Rs. 72,190. In the original assessment the ITO charged interest of Rs. 4,34,727 under section 215. In the appeal against the said assessment the CIT(A) held at para 14 of his appellate order dated 14-2-1983 in Appeal No. 142/ CIT(A) C-I/82-83 that at the time when the estimate of advance-tax was filed the assessment of the assessee for assessment year 1976-77 had only been completed and that according to the said assessment order the appellant was entitled to carry forward unabsorbed depreciation and deficiency under section 80J to the extent of Rs. 24,48,102. The CIT(A) in the said order had stated that the income-tax return of the assessee for the assessment year 1977-78 showed a profit of Rs. 18,69,091 which was before set off of carry forward losses and further that the income-tax return of the assessee for assessment year 1978-79 showed a loss of Rs. 5,28,938. Therefore, according to the CIT(A) when the statement of advance-tax for the assessment year under consideration was filed huge amount of carry forward losses were there and, therefore, the statement of advance-tax filed on 14-6-1978 and the revised estimate of advance-tax filed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment records the assessee had no income nor any tax was paid under section 140A consequently the income liable to advance-tax was nil. The logical conclusion, therefore, will be that no statement of advance-tax is required to be filed by the assessee-company under section 209A. Yet the assessee erroneously and inadvertently filed a statement of advance-tax on 14-6-1978 and thereafter revised on 14-12-1978. The counsel for the assessee argues that if an assessee does any act which is not mandatory or obligatory on him under law then performing such act cannot make him liable of any adverse consequences under the provisions of the Income-tax Act. Thus, in short, according to Sri Salarpuria, the statement of advance-tax and the revised estimate of advance-tax are all invalid and no cognisance should have been taken by the assessing officer and then invoke the provision of section 215 or section 273 and put the assessee in adverse consequences. The CIT(A), therefore, went wrong in the impugned order in holding that the levy of interest under section 215 was proper. 4. The learned departmental representative, Sri D.S. Roy, submits that though there was no obligation on the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst instalment, or where he has not previously been assessed by way of regular assessment under this Act [on or before the date] on which the last instalment, of advance tax is due in his case under sub-section (1) of section 211, if his current income is likely to exceed the amount specified in sub-section (2) of section 208, send to the Income-tax Officer----- (a) where he has been previously assessed by way of regular assessment under this Act, a statement of advance tax payable by him computed in the manner laid down in clause (a) or, as the case may be, sub-clause (i) of clause (d) of sub-section (1) of section 209, or (b) where he has not previously been assessed by way of regular assessment under this Act, an estimate of---- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, [and shall pay such amount of advance tax,---- (I) in a case failing under clause (a) as accords with the statement in equal instalments on the dates applicable in his case under section 211; and (II) in a case failing under clause (b), as accords with the estimate in equal instalments on such of the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n section 209 on the current income (which shall be estimated by the assessee) exceeds the amount of advance tax so payable by him by more than 33 1/3 per cent of the latter amount, he shall [on or before] the date on which the last instalment of advance tax is payable by him, send to the Income-tax Officer an estimate of---- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211 as have not expired, by instalments which may be revised according to sub-section (5) : Provided that in a case where the Commissioner is satisfied that, having regard to the nature of the business carried on by the assessee and the date of expiry of the previous year in respect of such business, it will be difficult for the assessee to furnish the estimate required to be furnished by him in accordance with the provisions of this sub-section [on or before the date] on which the last instalment of advance tax is due in his case, he may, if the assessee pays the advance tax which he is liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n into account in computing the said total income ; (iv) the net amount of income-tax calculated in accordance with sub-section (iii) shall, subject to the provisions of clauses (c) and (d), be the advance-tax payable ; " Section 208 states that advance-tax shall be payable during the financial year where total income exclusive of capital gain and income referred to in section 2(24)(ix) of the assessee referred to in clause 209(i)(a) exceeds the amount specified in sub-section (2) or where it is payable by virtue of the provision of section 209A. Therefore, section 209A(i)(a) requires that every person who has been previously assessed by way of regular assessment under the Act shall in each financial year on or before the date on which the first instalment of advance-tax is due in his case, if his current income is likely to exceed the amount specified in section 208(2) send to the ITO a statement of advance-tax payable by him computed in the manner laid down in section 209(1)(a). The provision of sub-clause (1) also calls for the payment of that amount of advance-tax. Section 209(1)(a) requires that an assessee's total income of the latest previous year in which he has been a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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