TaxTMI 
TaxTMI 
2006 (6) TMI 135
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....assessment tax of Rs. 8,30,000 paid on 30-6-2000 by the appellant before the date of filing the return of income i.e., 23-11-2000." 2. The assessee is an individual. He filed his return of income on 23-11-2000 returning his total income at Rs. 41,10,850 comprising of salary, long-term capital gains, short-term capital gains and income from other sources. He paid taxes before filing the return of income as under: (i) Tax deducted at source Rs. 44,073 (ii) Tax paid on 30-6-2000 &nb....
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.... that the aforesaid payment of tax was in the nature of "advance tax" for the purpose of section 234A and hence the Assessing Officer ought to have given the credit for the same while calculating the interest. The assessee contended before the CIT(A) that the interest chargeable under section 234A would be only Rs. 708 if credit for tax amounting to Rs. 8,30,000 paid on 30-6-2000 was given. In support of his case, the assessee placed reliance on the decision of Hon'ble Delhi High Court in Dr. Prannoy Roy v. CIT [2005] 254 ITR 755. The case of the Department, on the other hand, was that the aforesaid payment was not "advance tax" for the purpose of section 234A and hence it was not liable to be considered for calculation of interest. The lea....
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.... been considered specifically in that order, I am of the view that Hon'ble Court would have taken a different decision had this proviso to section 211(1) of the Income-tax Act been brought to their attention. In my view, provisions of the statute are clear, unambiguous and unequivocal and advance tax is defined under the income-tax statute and therefore it would not be desirable to consider the self-assessment tax paid as advance tax for calculating liability of the appellant under section 234A. Looking into clear cut legislative provisions, action of Assessing Officer is justified in charging interest under section 234A amounting to Rs. 64,207 by not considering payment of Rs. 8,30,000 as self-assessment tax on 30-6-2000 instead of Rs. 708....
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....ce with the provisions of Chapter XVII-C". Section 211 of the said Act provides for the instalments of advance tax and due dates by which they should be paid. Proviso to section 211 of the Income-tax Act treats any amount paid by way of advance tax on or before 31st day of March as advance tax paid during the financial year ending on that date for all the purposes of the Income-tax Act. It is thus quite clear that any amount paid after 31st March cannot be treated as "advance tax" for the financial year ending on that date as per the statutory definition of "advance tax" under section 2(1) of the Income-tax Act. 7. It, however, deserves to be noted that the definition of "advance tax" under section 2(1) is subject to the context. Opening....
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.... has been used. It, therefore, follows that the statutory definition of the term "advance tax" cannot universally hold good. 8. The term "advance tax" comprises of two words, namely, "advance" and "tax". It is something akin to advance payment of tax. The term "advance payment" is defined at page 1150 in Black's Law Dictionary (Seventh Edition - West Group) thus: "A payment made in anticipation of a contingent or a fixed future liability or obligation". In common parlance, the term "advance tax" would refer to the taxes paid by the assessee in anticipation of his tax liability for the concerned assessment year. In its generic sense, it is a payment in advance of the anticipated tax liability. However, the aforesaid generic meaning of the....
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.... the tax on the total income as determined under sub-section (1) of section 143 or on regular assessment as reduced by the advance tax, if any paid, and any tax deducted or collected at source." Income-tax can be paid, in advance of the anticipated liability, before submission of return of income in three ways, namely, by way of 'advance tax' before the expiry of the financial year concerned under section 211 of the Income-tax Act; by way of deduction of tax at source under Chapter XVII-B of the Income-tax Act; and by way of payment of tax after the expiry of the concerned financial year but before the submission of the return of income. All of them have one common feature in that they all are payments, in advance, of anticipated tax liabil....