Advance tax revised estimate and rectification of interest under the Income-tax Act were accepted on the admitted facts.

Where the assessee's relevant share income became known only after the last instalment of advance tax had fallen due, failure to furnish a revised estimate under section 212(3A) of the Income-tax Act, 1961 was not treated as a default attracting adverse consequence. The High Court also held that, on the admitted facts, interest charged under section 217(1A) was capable of rectification under section 154 because the error was apparent on the record and the assessee had reasonable cause for not filing the estimate in time. The matter was therefore resolved in favour of the assessee.

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Issues: (i) Whether the assessee was under an obligation to file a revised estimate of advance tax under section 212(3A) of the Income-tax Act, 1961. (ii) Whether an application under section 154 of the Income-tax Act, 1961 was maintainable for rectification of interest charged under section 217(1A) of the Income-tax Act, 1961.

Issue (i): Whether the assessee was under an obligation to file a revised estimate of advance tax under section 212(3A) of the Income-tax Act, 1961.

Analysis: The relevant share income of the assessee became known only after the time for payment of the last instalment of advance tax had expired. On those facts, the failure to furnish a revised estimate could not be treated as a default requiring adverse consequence under the provision. The factual position did not call for any further inferential process.

Conclusion: The assessee was not obliged to file a revised estimate under section 212(3A) of the Income-tax Act, 1961.

Issue (ii): Whether an application under section 154 of the Income-tax Act, 1961 was maintainable for rectification of interest charged under section 217(1A) of the Income-tax Act, 1961.

Analysis: The levy of interest, in the circumstances found, was held to be amenable to rectification under section 154. The mistake was treated as one capable of correction on the admitted facts, and the assessee was found to have reasonable cause for not furnishing the estimate within time. The application was therefore within the permissible scope of rectification.

Conclusion: The application under section 154 was maintainable and the interest could be rectified.

Final Conclusion: The reference was decided in favour of the assessee, and the orders adverse to the assessee were not sustained.

Ratio Decidendi: Where the relevant income becomes known only after the statutory time for advance tax has expired, failure to furnish a revised estimate may not constitute a rectifiable default, and an interest levy based on such facts may be corrected under the rectification provision when the error is apparent on the record.

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