1985 (10) TMI 93

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....g the order of the Commissioner of Income-tax passed under section 263 on the ground that when, on making the regular assessment, no tax liability was found due, there was no occasion for the Income-tax Officer to charge interest under section 216 of the Income-tax Act, 1961 ? " The Punjab Business and Supply Co. Pvt. Ltd., Yamunanagar (hereinafter called " the assessee "), was served with a notice dated April 11, 1972, under section, 210 of the Act by the Income-tax Officer requiring the assessee to pay advance tax of Rs. 2,03,863 on an income of Rs. 2,98,702 in 3 equal instalments on the stipulated dates in September, December and March of the financial year 1972-73. Apparently, the figures of the income and the amount of advance tax p....

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.... at Rs. 85,233. Since, as already stated above, the assessee had paid advance tax totalling Rs. 1,58,770, the amount of advance tax paid over and above Rs. 85,233 was determined as refundable to the assessee. The Commissioner of Income-tax was of the view that the assessee having filed the revised estimate on March 11, 1973, wherein the amount of Rs. 1,58,770 was mentioned as the advance tax payable on an estimated income of Rs. 2,77,000, the assessee had deliberately underestimated the advance tax payable by it in the first two instalments and as such the provisions of sub-clause (a) of section 216 of the Act became applicable. Not charging interest on the assessee as contemplated by section 216(b)(i) by the Income-tax Officer at the ti....