TMI Blog1994 (8) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 215 at Rs. 4,24,573 which was later on reduced under rule 40 of the Income-tax Rules, 1962 to Rs. 2,08,406. 3. The assessee filed an application under section 154 stating therein that it was under no obligation to file an estimate of advance-tax and as such there was no justification for charging interest under section 215. The Assessing Officer was of the opinion that the estimate of advance-tax at Form No. 29 filed by the assessee on 12-6-1979 on total income of Rs. 19,20,000 and a revised estimate of advance-tax filed on 14-12-1979 on total income of Rs. 13,95,000 were not mere scraps of paper and as such could not be ignored. He further held that whether an estimate of advance-tax filed despite the assessee's obligation to file it, can be acted upon for purposes of levying interest under section 215 was a debatable issue. Relying on the Supreme Court judgment in the case of T.S. Balaram v. Volkart Bros. [1971] 82 ITR 50, he rejected the assessee's application under section 154. 4. The assessee preferred an appeal before the learned CIT(A) who appreciated the hardship caused to the assessee but observed that such hardship was of the assessee's own seeking becau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Relying on the Tribunal's decision in S.P. Jaiswal Estates (P.) Ltd. v. ITO [1992] 41 ITD 342 (Cal.), it was submitted that when the assessee was not obliged by law to file a statement or estimate of advance-tax under section 209A, it could not be made liable for any interest under section 215 because the statement and estimate of advance-tax filed by the assessee-company were invalid and non est in law. Reliance was also placed on the Tribunal's decision in the case of Anil Kumar v. IAC [1986] 15 ITD 695 (Asr.) for the proposition that when the assessee was not required to file estimate of advance tax payable, interest under section 215 was not leviable. Reliance was also placed on the Tribunal's decision in the case of ITO v. Paramount Premises (P.) Ltd. [1985] 21 TTJ (Bom.) 572 for the proposition that as the assessee was not liable to pay any advance-tax, section 215 was not attracted. The learned Counsel for the assessee also relied on the Tribunal's decision in the case of Heatex Products (P.) Ltd. v. Fourth ITO [1986] 24 TTJ (Bom.) 65 for the proposition that interest under section 217 was not chargeable if the assessee did not file advance-tax estimate because it could ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ightly pointed out by the Revenue authorities, the estimate of advance-tax filed by the assessee cannot be treated as a scrap of paper. Some sanctity does attach to such documents. We, therefore, hold that, despite the decisions of the authorities in favour of the assessee, on merits, that when it is not obliged to file the estimate of advance-tax but erroneously files it, it should not be held liable to pay interest under section 215, we had held that another view is conceivable and possible. Once two views are possible, the matter goes out of the ambit of section 154 because it no longer remains a patent and obvious mistake. 10. The facts in the case of India Woollen Taxtile Mills (P.) Ltd. are also distinguishable from the facts of the instant case. In that case, the facts were that in the course of surtax assessment, the Income-tax Officer treated "surplus taxation reserve" and "dividend reserve" as reserves. Subsequently, he became alive to the existence of the Explanation to rule 1 of the Second Schedule of the Companies (Profits) Surtax Act, 1964. He immediately revised the assessment after giving a due notice to the assessee and his action was upheld by the first appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of Rs. 38,32,810. The Assessing Officer charged interest under section 215 to the tune of Rs. 4,24,573 which was later on reduced to Rs. 2,08,406 under rule 40 of the Income-tax Rules, 1962. The assessee preferred an appeal against the charging of interest and the ground of appeal raised before that authority was as follows: "6.6. Interest under section 215 of the Income-tax Act, 1961 has incorrectly been charged at Rs. 4,24,573 as against the correct amount of Rs. 4,12,732 which on the facts and in the circumstances of the case would have been waived in view of the provisions contained in rule 40 of the Income-tax Rules, 1962." 14. The CIT(A) looking into the facts and circumstances of the case, set aside the matter to the file of the IAC(A) "with the direction to calculate the interest under section 215 according to law and also allow consequential relief". 15. The assessee preferred an appeal against that order before the Appellate Tribunal and the Tribunal disposed of the matter vide order dated 20-7-1987. In para 18 of the order, the Tribunal observed that it was clear that the assessee challenged the interest charged under section 215 on two counts (i) there was mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. The learned Counsel for the assessee also relied on the Supreme Court judgment in the case of Chamundi Mopeds Ltd. JT 1992 (3) S.C. 98. Our attention was drawn to the distinction made by the Supreme Court regarding the stay orders and orders which were quashed and remanded. It was submitted that where an order has been stayed, it only means that order which has been stayed would not be operative from the date of the passing of the stay order and it does not mean that the said order has been wiped out from existence. But if an order passed by the appellate authority is quashed and the matter is remanded, the result would be that the appeal which has been disposed by the said order of the appellate authority would be restored and it could be said to be pending before the appellate authority after the quashing of the order of the appellate authority. It was, therefore, submitted that once the matter was set aside by the learned CIT(A) and his order was confirmed by the Tribunal, then the matter was open and had to be decided afresh by the Assessing Officer on merits. 19. We have carefully considered the rival submissions. The argument of Shri Mehra though attractive at first blus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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