1991 (6) TMI 24

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....the court was delivered by K. SHIVASHANKAR BHAT J. - The following question has been referred for our consideration under section 256(1) of the Income-tax Act, 1961. " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in cancelling the interest levied under section 216 by following the decision of the Andhra Pradesh High Court in Addl. CIT v. ....

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....00 11,82,500 15-9-1980 11-12-1980 1,00,00,000 59,12,500 47,30,000 18-12-1980 12-3-1981 1,30,21,000 76,98,666 17,86,200 18-3-1981 ----------------------------------------------------------------------------------------------------------------------------------------------- At the time of assessment, the Income-tax Officer held that the assessee's payment of the first instalment of advan....

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.... authority did not give any finding that the assessee had underestimated the advance tax payable by him and thereby reduced the amount payable in either of the first two instalments. He proceeded to levy interest solely because the ultimate income found was not duly reflected in the advance tax paid in so far as the first instalment was concerned. The appeal filed by the assessee before the Commis....

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....to the proved facts in the instant case. Even the Income-tax Officer found that the assessee had filed all the estimates properly and made the payments of advance tax and in fact, the total advance tax paid by the assessee exceeded the tax assessed on the assessee. In the very nature of things, a business concern can only estimate the income that may be earned by the assessee. It is not possible t....