TaxTMI 
TaxTMI 
1982 (4) TMI 188
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....4 on the latter amount and not the former. The assessee preferred an application under s. 154 claiming interest on the orders of tax deducted at source over the tax payable i.e. Rs. 8,756. The ITO declined to allow the claim. The assessee filed an appeal. The AAC found that s. 214 authorised interest only on "advance tax" paid under s.s 207 to 213 and that advance tax therefore is what is payable under Part C, Chapter XVII of the Act. Tax deducted at source falls under Part B of that Chapter (s.192 to s.206B). He therefore confirmed the order of the ITO declining to "rectify" the alleged omission of the ITO. In this second appeal, it is pointed out that Gujarat High Court in Chandrakant Damodardas vs. ITO (1980) 16 CTR (Guj) 1 : (1980) 123 ....
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....80) 16 CTR (Guj) 1 at pages 3 & 4 : (1980) 123 ITR 748 at 752 (Guj) is with reference to the date from which the interest should start running and not in respect of other matters where the statute is otherwise explicit. He also contended over if his plea on merits is not found acceptable, it is his alternative case that s. 154 cannot at any rate, apply as the contention of the assessee is, at best, arguable. 4. We have carefully considered the records as well as arguments. The tax position is as under: Total income for various sources . Rs. 60,370 Income-tax thereon Rs. 4,056 . Surcharge at 15 per cent 608 . Total demand 4,664 . Less: Tax deducted at sources 13, 420 . 8,756 . Advance tax paid 2,304 . . Sec. 214 interes....
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....y the statute in s. 214 which does not give room to any ambiguity or doubt. The case with reference to which interest is reckoned is different under s. 214 where interest is payable by Government and s. 217 where it is payable by the assessee. While calculating interest under s. 214 the excess advance tax as reckoned with reference to "tax determined on regular assessment." While reckoning interest under s. 217 the excess of "assessed tax" over advanced tax forms the basis. Sec. 217(5) defines "assessed tax" for purposes of s. 217 (and for 273) "as the tax determined on the basis of regular assessment as reduced tax deductible in accordance with s. 192.…….etc." It is not open to the ITO, in our opinion, to substitute the base....