1982 (6) TMI 119

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.... the ITO gave deductions of Rs. 41,922 only by way of advance-tax; he did not treat Rs. 82,043 as advance-tax as the instalments in question had been paid by the assessee company after the due dates specified in s. 211 of the IT Act, 1961. The instalment which was paid in time and which was regarded as a payment of advance-tax was the one which the assessee company had paid on 13th June, 1975, amounting to Rs. 41,022. As not being advance-tax were paid by the assessee- company on the following dates: 23rd Jan., 1976   41,022 28th Feb., 1976   21,022 March, 1976   19,999 The accounting year of the assessee is calendar year and, therefore, in terms of s. 211 last instalment payable u/s 211 fell due....

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....708 (All) (FB). 3. CIT vs. Mahabir Pd. & Sons (1980) 17 CTR (Del) 161 : (1980) 125 ITR 165 (Del). 4. CIT vs. Raghubir Singh & Sons (1980) 18 CTR (P&H) 107 : (1980) 125 ITR 256 (P&H). 5. In our opinion, the departmental contention is not sound and does not have the weight of authority in its favour. The decision of the Hon'ble High Court relied upon by the revenue was on different facts altogether. There the only ground of appeal was whether or not interest u/s 139 (8) was chargeable. To this question, the Hon'ble Gauhati High Court had given its reply, viz., that s. 246 (c) does not provide for any appeal against the levy of interest in accordance with the provisions of s. 139. It did not deal with a situation where the liability t....

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....therefore, according to him, correct in not giving credit for taxes paid after the due dates while working out interest u/s139 (8). 7. On behalf of the assessee, however, the aforesaid view point is strongly contested and it is pointed out that advance-tax is payable with reference to the financial year as has been amplified in s. 208 of the IT Act, 1961, and payment made during the financial year towards advance-tax payment would have to be treated as advance-tax. According to him, the dates mentioned in s. 211 for payment of instalments of advance-tax were merely a directory and were not mandatory and their purpose was to provide uniform basis for the department for collection of taxes and any slight variation from those date would not....