1989 (4) TMI 118

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....overed in favour of the assessee and against the Department by the decision in the case S.V. Ghatalia vs. 2nd ITO (1983) 37 CTR (Trib)(Bom) 68 : (1983) 4 ITD 583 (Bom). We, accordingly, reject this ground. 3. Ground No. 2 is as follows: "On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in directing the IAC to delete the addition of Rs. 8,894 made under r. 6B of the IT Rules." The assessee had spent Rs. 8,894 on food hampers, mango parcels, dry fruits etc., distributed amongst business customers on account of Diwali and Christmas. The IAC (Assessment) held that these expenses were expenses on advertisement. According to him the basic purpose of giving these articles was for obtaining public favo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... IAC (Assessment) had levied interest of Rs. 59,646 under s. 216 of the IT Act 1961. During the relevant financial year the assessee had filed three estimates of of advance-tax as under: Date of filing the estimate Income estimated Tax payable 8-6-1981 10,30,000 5,80,662 14-9-1981 50,30,000 28,35,662 10-12-1981 71,70,000 40,42,088 The IAC (Assessment) levied interest under s. 216 of the Act on the ground that the assessee paid less advance tax in the first two instalments by under estimating its income. The CIT(A) has deleted the said levy of interest and the Revenue has now come in appeal before us. 6. We have heard the parties. The first instalment was payable on 15th June, 1981. The second instal....