1987 (6) TMI 95

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....9(8) and s. 215 was levied. The interest under s. 139(8) was levied for late filing of the return. The interest under s. 215 was levied because the advance tax paid was less than 75% of the assessed tax. The assessees through their Auditor filed petition under s. 154 on 19-4-1983 for rectification of the assessment deleting the levy of interest. In that petition, they drew the attention of the Income-tax Officer to the communication dated 11-7-1979 addressed by the respective assessees specifically requesting the Income-tax Officer to make a provisional assessment under s. 141A in view of the substantial payment of advance tax for the earlier assessment year 1979-80. It was also requested that the refund that might result under s. 141(1) be....

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....e to the assessees in the regular assessment itself in relation to the earlier year. Having thus received interest, the assessees should not agitate further for cancelling the interest levied under different sections viz. 139(8) and 215, for the default committed by them. It was his further submission that the assessments have been completed under s. 143(1) except in the case of the assessee in ITA No. 658/Hyd./1985, if the assessees had really objected to the assessments, the proper course would have been to have recourse to the proviso to s. 143(2) and not to s. 154. There was delay in the submission of the returns and the advance tax paid fell short of 75% of assessed tax and, therefore, in the absence of any reasonable cause, the assess....

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....been made, the assessees would be entitled to certain refunds. But, it is also a fact that unless and until an order under s. 141A is passed, no refund is due to the assessees, because such a refund is contingent upon passing of an order under s. 141A. Therefore, when the assessees were bound to pay advance tax for the assessment year 1980-81, nothing was due to the assessees from the Government and they cannot be under a belief, however bona fide, that the excess tax paid in the earlier years would get adjusted against the advance tax payments. This is so notwithstanding the fact that a specific request had been made to the Income-tax Officer inviting him to pass an order under s. 141A and adjust the excess tax paid against advance tax due....

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.... legal position is taken into account, the conclusion is inescapable that the Income-tax Officer was justified in levying interest under s. 139(8) in the absence of any reasonable cause for the late submission of the returns. As the assessees were liable to pay interest under s. 139(8), there could be no denial of such liability and, therefore, the appeal against the levy of interest under s. 139(8) should not have been entertained by the Appellate Assistant Commissioner. 8. In the case of assessments under s. 143(1), it is not permissible for the assessees to plead for rectification under s. 154 on grounds of mistake apparent from record. This is because in the ratio of the decision of the Tribunal in Sixth ITO v. Pithva Engg. Works [19....