Advance tax cheques presented in time may count as payment date for interest, limiting section 263 revision.

Cheques tendered towards advance tax and presented in time were treated as paid on the date of presentation, because the Department could realise the amount by sending them for collection and any later encashment delay was not attributable to the assessee. On that basis, interest under section 214 was correctly granted from the presentation date. The text also states that where the assessment is not erroneous or prejudicial to the interests of the Revenue on that footing, revision under section 263 is not justified.

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Issues: Whether the date of presentation of cheques tendered towards advance tax could be treated as the date of payment for grant of interest under section 214, and whether the Commissioner was justified in revising the assessment under section 263.

Analysis: The cheques were admittedly presented to the Income-tax Officer within time. Once presented, the Department could realise the amount by sending the cheques for collection, and any delay in encashment could not be attributed to the assessee. On that footing, the date of presentation was treated as the date of payment. Since the interest had been correctly granted on that basis, the assessment order could not be regarded as erroneous and prejudicial to the interests of the Revenue so as to justify revision.

Conclusion: The date of presentation of the cheque was held to be the date of payment, and the revisionary order under section 263 was cancelled.

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