Advance-tax due dates are directory: late instalments still count as advance tax for interest computation under section 139(8).

Appealability of interest levied under section 139(8) was upheld where the assessee disputed liability to pay the interest and raised other grounds, so the appellate authority was competent to examine the levy in that setting. Late instalments of advance tax paid after the due dates under section 211 did not lose their character as advance tax; the statutory dates were treated as directory, not mandatory, and the payments still had to be credited while computing interest under section 139(8). The discussion therefore supports maintainability of the appeal on the interest issue and confirms that delayed advance-tax payments remain available for credit in the interest computation.

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Issues: (i) Whether an appeal lay against the levy of interest under section 139(8) of the Income-tax Act, 1961, where the assessee also challenged its liability to pay such interest; and (ii) Whether advance-tax instalments paid after the due dates prescribed under section 211 of the Income-tax Act, 1961 retained their character as advance tax for the purpose of computing interest under section 139(8) of the Income-tax Act, 1961.

Issue (i): Whether an appeal lay against the levy of interest under section 139(8) of the Income-tax Act, 1961, where the assessee also challenged its liability to pay such interest.

Analysis: The appellate provision was read in the context of a case where the assessee disputed liability to pay interest and had other grounds of appeal as well. The earlier authority relied upon by the revenue was distinguished as turning on a different factual situation in which the only issue was the appealability of interest levy. The decisions cited by the assessee were treated as supporting the competence of the appellate authority to examine the levy in such a setting.

Conclusion: The appeal was maintainable and the appellate authority was competent to adjudicate the levy of interest under section 139(8) in the present case.

Issue (ii): Whether advance-tax instalments paid after the due dates prescribed under section 211 of the Income-tax Act, 1961 retained their character as advance tax for the purpose of computing interest under section 139(8) of the Income-tax Act, 1961.

Analysis: The statutory scheme of advance tax was read as relating to tax payable with reference to the financial year, while the dates in section 211 were treated as a broad time framework rather than a condition that altered the nature of the payment. Payments made after the prescribed dates were held not to lose their character as advance tax, and the default attracted the statutory consequences under the recovery and penalty provisions, but credit still had to be given while computing interest. Support was drawn from the assessee's authorities and the Kerala High Court decision referred to in the order.

Conclusion: Late instalments of advance tax continued to be advance tax and had to be credited in computing interest under section 139(8).

Final Conclusion: The departmental challenge failed on both the maintainability point and the computation of interest, and the assessee's treatment of the late advance-tax payments was upheld.

Ratio Decidendi: The due dates for advance-tax instalments are directory, not mandatory, so payment after those dates does not cease to be advance tax, and such payments must be given credit in computing interest under section 139(8) when the assessee's liability is in issue.

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