1989 (4) TMI 48

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of Rs. 31,29,358. The assessee paid the amount as follows : Date of deposit Amount deposited Rs. 14-6-1971 4,63,340 14-9-1971 8,23,330 15-12-1971 6,43,330 2-3-1972 5,40,000 14-3-1972 61,750 Up to December 15, 1971, Rs. 19,30,000 was paid and Rs. 6,01,750 was paid thereafter in March, 1972. In this manner, till March 14, 1972, Rs. 25,31,750 was paid as advance tax, against the demand of Rs. 31,29,358. Since the accounting year ended on December 31, 1971, and less than 75 per cent. of the advance tax was paid by then on the balance, interest was charged by the Income-tax Officer under section 215 of the Act. The assessee challenged the imposition of interest but on appeal the Commissioner of Income-tax (Appeals) del....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ancelling the reassessment made by the Income-tax Officer ?" Since the two references related to the same assessee and for the same assessment year, one common statement of the case with both the questions mentioned therein has been sent to this court. We propose to deal with each question separately. Adverting to the question relating to interest, on a reading, of the chart tabulated above regarding payment of advance tax, we find that till the end of the accounting year, i.e., up to December 31, 1971, against the demand of Rs. 31,29,358, Rs. 19,30,000 was paid which is less than 75 per cent. of the advance tax, and, therefore, it is clear that the assessee committed default in payment of advance tax. If 75 per cent. of the advance t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....paid before April 1, 1972, and had been paid some time thereafter before the regular assessment, interest could have been charged with effect from April 1, till the date of payment. See in this behalf section 215(2)(i). The word "or otherwise" in subsection (2) signifies that in whatever manner tax is paid, it shall be taken note of in calculating the interest. In spite of default having been committed by the assessee in not paying the due advance tax within time, yet by virtue of the provisions of section 215(2) read with sub-section 2(1) of the Act, which provides for charging interest with effect from April 1 next following till payment, no interest is payable on the amount of Rs. 6 lakhs odd, as mentioned above, as the payment of that a....