1995 (3) TMI 130

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... India as well as in foreign countries. Its accounting year ended on 30th June, 1985. It had filed an estimate of advance tax on 13-6-1985 and had paid the first instalment on the basis of estimating its income at Rs. 1,21,00,000. Since the tax worked out to Rs. 76,23,000 and since the tax deducted at source was Rs. 1.05 crores, no advance tax was paid by the assessee in the first instalment. The second instalment was paid on the same basis. Only when the 3rd instalment was to be paid, the assessee revised its estimate on 12-12-1985 and estimated total income at Rs. 2,39,42,873. Since the tax deducted at source was Rs. 1,22,60,000 by that time and since the appellant deposited Rs. 7 lakhs with the IDBI it paid Rs. 9 lakhs as advance tax on ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ason was given for allowing the relief, the interest under section 216 had to be charged. 5. The ld. Counsel for the assessee on the other hand submitted that it was a case where the assessee had paid about Rs. 1.22 crores by way of TDS and only Rs. 9 lakhs had remained to be paid. She submitted that the shortfall was thus, hardly about 6% which could not be said to be intentional or deliberate. She relied on the decision of the Hon'ble Gujarat High Court in the case of CIT v. Nagri Mills Ltd. [1987] 166 ITR 292. According to ld. Counsel, as per the ratio of decision in that case, there can be "under-estimation" only when it was deliberate or intentional. Further, in assessee's case, there was no question of "deferment" because the tax h....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he provisions of section 216 were applicable even in the cases of those assessees whose accounting year ended on 31st March and whose first instalment was to be paid and estimate of advance tax was to be filed by 15th of Sept. of the preceding calendar year, i.e. about more than six months before the close of the accounting year. Yet, if it was found that the estimate of advance tax for the first two instalments was an "under-estimate" they were liable for payment of interest under section 216. In the case of the assessee since the accounting year was to end on 30th June every year, the first estimate of advance tax was to be filed only 15 days before the close of the accounting year. It is not possible to believe that the conduct of the as....