TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether advance tax paid after the prescribed due date, but during the relevant financial year, must be deducted from the tax payable while computing penalty under section 271(1)(a) of the Income-tax Act, 1961.
Analysis: The Explanation to section 271(1)(a) defines "assessed tax" as tax reduced by tax deducted at source under Chapter XVII-B and tax paid in advance under Chapter XVII-C. The scheme of Chapter XVII-C shows that advance tax is tied to the relevant financial year, while the penalty provision operates after the close of that year for failure to furnish the return within time. In that setting, the expression "paid in advance" was held to cover all sums paid as advance tax during the relevant financial year, and not only instalments paid on the exact dates prescribed for advance-tax payments. A contrary construction would defeat the purpose of the Explanation.
Conclusion: Advance tax paid after the due date but within the relevant financial year has to be deducted while computing "assessed tax" for penalty under section 271(1)(a). The answer is in the affirmative and is in favour of the assessee.
Ratio Decidendi: For computing penalty under section 271(1)(a), all tax actually paid as advance tax during the relevant financial year falls within Chapter XVII-C and must be deducted from assessed tax under the Explanation, even if paid after the prescribed instalment date.
TaxTMI 
TaxTMI 
