2015 (7) TMI 411

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....of the case, the Income Tax Appellate Tribunal was right in holding that interest u/s 215 of the Income-tax Act was chargeable on the basis of assessed income but excluding enhanced share of the assessee determined in the case of the firm where he is a partner?" 2. All the papers pertaining to the matter are not available. From the statement of the case, it appears that by an order dated 24.05.1996, this Court issued directions in Income-tax Case No.143 of 1994 directing the Tribunal to refer the question of law. It is pursuant to the said order that the present reference has been made. The statement of the case states as follows. 3. The assessee filed a return of income for the assessment year 1984-85 in the status of HUF declaring a....

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....y interest on account thereof under Section 215 in respect of the enhanced share. 6. Section 215 of the said Act and Rule 40(5) of the Income Tax Rules, 1962 in so far as they are relevant read as under:- "Section 215. Where, in any financial year, an assessee has paid [advance tax under section 209A or section 212 on the basis of his own estimate(including revised estimate)], and the advance tax so paid is less than seventy-five per cent of the assessed tax, simple interest at the rate of [fifteen] per cent per annum from the 1st day of April next following the said financial year up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax so paid falls short of the assessed tax:....

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.... the ITO. The DCIT(A) directed the ITO to see whether interest under Section 215 was still chargeable even after excluding the addition made in the share income and that if no such interest becomes chargeable then nothing should be charged from the appellant. He further directed that if interest under Section 215 is still chargeable, the explanation given by the appellant ought not to be accepted and directed the ITO, in that event, to charge interest under Section 215 on the basis of the assessed income. The Tribunal confirmed the finding of the DCIT(A). The Tribunal held that there was a reasonable and sufficient cause for the assessee's filing the estimate and that the estimate could not be said to be untrue much less false to the kno....