Advance tax shortfall and regular assessment treatment barred interest where paid tax exceeded the statutory threshold.

Interest under section 215 was linked to whether advance tax paid was less than seventy-five per cent of assessed tax. An order giving effect to an appellate order was treated as an order under section 143 and therefore as a regular assessment for computing assessed tax. On that basis, the amount of advance tax already paid exceeded the relevant threshold, so no shortfall arose and interest was not leviable. The assessee succeeded on the cross-objection, while the revenue's appeal failed.

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Issues: Whether interest under section 215 of the Income-tax Act, 1961 was leviable after giving effect to the appellate order, and whether the resulting order constituted a regular assessment for computing assessed tax.

Analysis: Section 215 applies where advance tax paid is less than seventy-five per cent of the assessed tax. The amount of income computed after giving effect to the appellate order was held to furnish the basis for determining assessed tax. An order passed by the Income-tax Officer giving effect to an appellate order was treated as an order under section 143 and therefore a regular assessment. On that basis, the advance tax already paid exceeded the relevant percentage of the assessed tax, so there was no shortfall attracting interest.

Conclusion: Interest under section 215 was not leviable and the assessee succeeded on the cross-objection; the revenue's appeal failed.

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