Advance tax timing and interest under section 217 could not be revisited in revision where binding precedent barred levy.

Where an estimate of advance tax and the related payment were made before 1 April of the following financial year, interest under section 217 of the Income-tax Act could not be levied on the Gujarat High Court precedent applied by the ITAT. The Tribunal held that the Commissioner was not justified in revising the assessment under section 263 to direct charging of such interest, because the binding High Court decision governed the issue and had to be followed. The revisionary order was therefore set aside in favour of the assessee.

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Issues: Whether the Commissioner was justified in revising the assessment under section 263 of the Income-tax Act, 1961, on the ground that interest under section 217 ought to have been charged where the estimate of advance tax was filed, and the advance tax was paid, before 1 April of the next financial year.

Analysis: The objection based on the timing of the estimate under section 212(3) was not examined finally, as the assessee succeeded on the broader question of liability to interest. The governing Gujarat High Court decision held that where the estimate and the advance tax payment were made before 1 April following the financial year in which the tax was payable, interest under section 217 could not be levied. The Commissioner had referred to that decision but declined to follow it; the Tribunal held itself bound by that precedent.

Conclusion: The revisionary order directing levy of interest under section 217 was not justified and was set aside in favour of the assessee.

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