1994 (10) TMI 16

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....--At the instance of the Commissioner of Income-tax, the Income-tax Appellate Tribunal, Ahmedabad, has referred the following question of law arising out of its order passed in I.T.A. No. 377/Ahd./1982 relating to the assessment year 1976-77: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the assessee was not liable to....

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....ation might be because of a bona fide mistake, the doubtful position of law or circumstances beyond the control of the assessee. So also, when the payment of advance tax is wrongly deferred, that might be as a result of a bona fide mistake, or doubtful position of law or circumstances beyond the control of the assessee. If the Legislature wanted interest levied under section 216 to be compensatory....

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.... to reduce the amount of advance tax payable, or he had wrongly and deliberately deferred payment of advance tax...." We express our full agreement with the aforesaid pronouncement on the interpretation of section 216 of the Income-tax Act. In this connection, the decision of the Allahabad High Court in the case of CIT v. Elgin Mills Co. Ltd. [1980] 123 ITR 712 may also be usefully referred ....