TaxTMI 
TaxTMI 
2007 (5) TMI 232
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....ancelling the levy of interest under section 217(1A)?" 2. The reference relates to the assessment year 1973-74. 3. Briefly stated the facts giving rise of the present reference are as follows : 4. A demand of Rs. 29,88,105 was raised under section 210 of the Act by the Department and the demand notice was served on June 9, 1972. The appellant-company paid up the entire demand in three equal instalments on June 15, 1972, September 15, 1972, and December 1, 1972. There was thus a proper compliance. It appears that the appellant-company considered itself liable to file a revised estimate under section 212(3A) of the Act. Since the company had certain problems relating to its accounts and it had already sought extension of time from the Regi....
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....aid a further sum of Rs. 5 lakhs towards advance tax on the basis of the financial picture emerging as a result of audit. Thus, the total tax paid (claimed by the appellant-company as advance tax) was Rs. 60.14 lakhs. The return of income was submitted by the appellant-company on November 30, 1973, on an income of Rs. 1,07,18,483. A sum of Rs. 6,76,000 was paid by way of self-assessment tax. The assessment was completed on December 31, 1975. The final assessed income amounted to Rs. 1,30,71,482. After giving credit for the prepaid taxes, further tax payable was determined at Rs. 8,58,779. Interest under section 217(1A) of the Act was charged at Rs. 2,08,664. The appellant-company moved an application under section 154 of the Act on May 17, ....
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.... 15, 1972, the respondent had deposited a sum of Rs. 20 lakhs and odd making the total deposit of Rs. 50 lakhs and on January 15, 1973, it had filed revised estimate of income and deposited the balance amount of tax which came to Rs. 5 lakhs and odd. The application was rejected by the Commissioner of income-tax on February 20, 1973, on the ground that the accounting period had already expired. 7. We are of the considered opinion that as the assessee had filed an application on December 13, 1972, seeking extension of time for filing the revised estimate of income which application was kept pending by the Commissioner of Income-tax the question of levy of interest under section 217(1A) of the Act did not arise as the presumption would be th....