TaxTMI 
TaxTMI 
2005 (8) TMI 92
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....otal income returned by the assessee in the return of the income for the assessment year 1985-86 as it was higher than the assessed income. On June 15, 1986, the assessee paid the first instalment of advance tax amounting to Rs. 1,33,66,600. The second instalment of advance tax in the sum of Rs. 1,33,66,600 was also paid on September 15, 1986, by the assessee. On February 13, 1986(?), the assessee filed a revised estimate of advance tax and paid the enhanced amount of advance tax before December 15, 1986. The first and second instalments of advance tax were computed on the basis of the income of Rs. 8,08,88,420. By the revised estimate the advance tax was paid by the assessee on the estimated income of Rs. 10,27,56,000. The Assessing Officer by his order dated March 25, held that the assessee underestimated the advance tax and accordingly imposed interest under section 216 of the Income-tax Act. The amount of interest was computed at Rs. 4,18,772. Aggrieved by the order of the Assessing Officer, the assessee preferred appeal before the Commissioner of Income-tax (Appeals) Central 1, Mumbai. The appellate authority set aside the order of the Assessing Officer and deleted the interes....
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....ble by him under sub-section (1), he may send to the Income-tax Officer, in lieu of such statement, an estimate of- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate in equal instalments on the dates applicable in his case under section 211. (3) Where an assessee who has sent a statement under clause (a) of sub-section (1) estimates on or before the date on which the last instalment of advance tax is due in his case that, by reason of his current income being likely to be less than the income on which advance tax is payable by him under sub-section (1) or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the current income would be less than the amount of advance tax payable by him under sub-section (1), he may, at his option, send to the Income-tax Officer an estimate of- (i) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estim....
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....t., the figures and words '20 per cent.' had been substituted. (5) The assessee may send a revised estimate of the advance tax payable by him on or before any one of the dates specified in section 211 and adjust any excess or deficiency in respect of any instalment already paid in a subsequent instalment or in subsequent instalments. (6) Every statement or estimate under this section shall be sent in the prescribed form and verified in the prescribed manner. Explanation.- For the purposes of this section and section 212, 'current income', in relation to the advance tax payable by an assessee during any financial year, means the total income of the assessee (exclusive of capital gains and income referred to in sub-clause (ix) of clause (24) of section 2, if any) of the period which would be the previous year for the assessment year immediately following that financial year." It is not in dispute that the assessee was previously assessed by way of regular assessment under the Income-tax Act. It is also not in dispute that under section 209A(1)(a) the assessee forwarded a statement of advance tax payable by him based on its previous year's total income returned in the return of in....
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.... income calculated in the manner laid down in section 209 of the Act. It will be apparent that, where a statement is filed under section 209A(1)(a) of the Act, the assessee is not required to estimate his current income. He has to comply only with the statutory requirement of section 209(1)(a) and (d)(i) and prepare a statement accordingly. Therefore, when the statute does not require him to make an estimate, the question of underestimating his income does not arise when the statement is made under section 209A(1)(a) of the Act in accordance with the provisions of the section. That the Legislature has made a distinction between a statement of advance tax required to be furnished under section 209A(1)(a) and an estimate of advance tax will also be apparent from the fact that the statement under section 209A of the Act is to be furnished in Form No. 28A and the estimate of advance tax is required to be submitted in Form No. 29. Reference may also be made in this connection to section 217 of the Act which refers to a statement which is required to be furnished under section 209A(1)(a) and an estimate which may be filed in lieu of such statement referred to in section 209A(2) of the Ac....
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....is warranted by the express provisions of the section. Where the Legislature uses two different words in the same provision, it is not permissible to equate the scope and meaning of the two words which, on their plain language, are different, ft is a well-settled rule that, when two interpretations are possible, in other words, where the provision is capable of two alternative meanings, the one favouring the taxpayer is to be adopted, particularly when such a provision purports to impose penal interest." We find ourselves in agreement with the view taken by the Calcutta High Court. A careful reading of section 209A(1)(a) of the Income-tax Act would clearly show that the Legislature has used the expression "statement" therein while in sections 209A(2), 209A(3) and 209A(4) the Legislature has employed the expression "estimate". The Legislature thereby made a clear distinction between the statement which is required to be filed under section 209A(1)(a) and the estimate that is required to be filed under section 209A(4). When an assessee files a statement u/s 209A(1)(a), he does not nor is he required to estimate his current income. On the basis of the total income returned by the ass....