Advance tax credit for interest computation survives late estimate filing under section 217(1A), Delhi HC rules.

For interest under section 217(1A) of the Income-tax Act, advance tax paid before the close of the assessment year had to be credited even if the estimate of current income under section 212(3A) was filed late. The Delhi HC held that delayed filing of the estimate did not deprive the assessee of credit for a payment made before the relevant cut-off date. Applying the earlier view in similar cases, the court answered the reference in favour of the assessee and against the Revenue.

---

---

Issues: Whether, for charging interest under section 217(1A) of the Income-tax Act, 1961, the amount paid towards advance tax before the close of the assessment year had to be taken into account even though the estimate of current income was filed after the due date.

Analysis: The amount paid on 13 March 1972 was made before the close of the assessment year. The question was whether the delayed filing of the estimate under section 212(3A) deprived the assessee of credit for that payment while computing interest. Following the earlier view taken in similar cases, the payment made before the relevant cut-off date was required to be considered for the purpose of interest under section 217(1A).

Conclusion: The question referred was answered in the affirmative, in favour of the assessee and against the Revenue.

---