TaxTMI 
TaxTMI 
1989 (7) TMI 169
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....arch, 1984 the assessee company had filed form no. 29 of estimating its income at Rs. 18,12,240 and has paid the last installment of advance tax accordingly, The ITO on completion of the assessment levied the interest under s. 216 of Rs. 16,072 for reason that the first two instalment of advance tax were lesser than the last instalment, though he did not call upon the assessee company to explain it Aggrieved the assessee company preferred appeal to the CIT (A) the contention of the assessee was that as required by law it had filed the statement of its income in form No. 28A and had paid the taxes accordingly and therefore no interest could be charged from the assessee. In support of its contention the assessee had placed reliance on Tribuna....
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....hat income the Act also provided for filing of a lower estimate of income initially. The Act provided for the estimation of higher income only when the current years income was more than the income as per form 28A by 33 and 1/3rd percent and this estimation was to be done on or before the last instalment of advance tax was due. He accordingly pleaded that the assessee in the instant case having complied with the law literally, interest could not be charged for the mere reason that the first two instalments of advance tax were lower than the last instalment of advance tax. He pleaded that the statement of income and estimate of Income are two different and distinct categories recognised by the Act. He pleaded that s. 216 would get attracted ....
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....ate of lower income as soon as he receives the said notice and pay the advance tax accordingly. Third as provided in s. 212 (3A) of the Act, he could pay the first two instalments as per the notice from the ITO and file an estimate of higher income on or before the last instalment of the advance tax and pay the differential tax as the last instalment. The new assessees were required to file their estimate of income only on or before the last date of instalment of advance tax. The assessee were allowed to revise the estimate of income for advance tax purpose at any time and pay the tax. The existing assessees who were not served with the notice of advance tax under s. 210 did not pay any advance tax. 5.2 The legislature wanted to remove t....
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....r on the last assessed income or the last returned income in which he had paid self assessment tax whichever income was higher. In drawing up the statement adjustments were allowed to be made in respect of income from capital gains, winnings from lottery, etc. The said statement was required to be filed on or before the first instalment of advance tax was due. The advance tax instalments were to be paid based on this statement of income. Second, he was allowed the option of fling an estimate of lower income of the current year instead of filing the statement of income and pay the advance tax on that basis. Third, he is expected to file an estimate of higher income in case the current year's income exceeded the income as per the statement of....
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.... paid on the basis of this statement it tantamounts to paying of taxes as demanded of him by ITO under s. 210. Therefore when the taxes are paid on the basis of this statement of virtue of notice under s. 210. The question of comparing the first two instalments of advance tax with the last instalment of advance tax does not arise at all. In situation two it does attract the requisites of comparison to be made of the first two instalments with the last instalment of advance tax for the taxes were paid on the basis of an estimate. In situation three the estimate of higher income on or before the last instalment of advance tax is required to be made only when the different between the current year's income and the income as stated in the state....