High Court of Judicature at Allahabad
Case Law Search
C.I.T. v. M/S G.D. & S. (P) Ltd. - INCOME TAX REFERENCE No. 42 of 1987  RD-AH 110 (7 January 2005)
Court No. 37
I.T.R. No. 42 of 1987
Chief Commissioner of Income Tax and another...........Applicant
M/s Ganesh Das & Sons (P) Ltd...... Respondent
Hon'ble R.K. Agrawal, J.
Hon'ble Prakash Krishna, J.
The Income Appellate Tribunal, Allahabad has referred the following two questions of law under Section 256 (1) of the Income Tax Act, 1961, hereinafter referred to as the Act for opinion to this Court.
1. Whether on facts and in the circumstances of the case, the Tribunal was justified in upholding the order of C.I.T. (A) deleting interest levied u/s 215 of the I.T. Act 1961?
2. Whether on the facts and in the circumstances of the case the Tribunal was legally correct in holding that the excess amount paid during the financial year even on the date subsequent to the date stipulated u/s 211 of the I.T. Act, 1961 was liable to be treated as advance tax for purposes of levying interest u/s 215?
The reference relates to the assessment year 1980-81. Briefly stated the facts of the present case are as follows. The respondent company had filed revised estimate of advance tax on 15th December, 1979 and paid additional tax only on 10th March, 1980 and not on or before 15th December, 1979. Due to delay in making payment the tax paid on 10th March, 1980 was not treated ad advance tax for the purpose of levy of panel interest under Section 215 of the Act. The penal interest therefore, was charged amounting to Rs. 31,515/- ignoring the tax paid after 15th December, 1979. Subsequently an application under Section 154 of the Act was filed by the respondent in which it was stated that the interest under Section 215 of the Act has been wrongly charged and the order be rectified accordingly. This application has been rejected by the Inspecting Assistant Commissioner (Assessment). Feeling aggrieved the respondent/assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who while allowing the appeal had held that the payment made on 10th March, 1980 which was within the financial year could not be ignored and, therefore, the interest charged was cancelled. Feeling aggrieved the Revenue preferred an appeal before the Income Tax Appellate Tribunal. The Tribunal has upheld the order passed by the Commissioner of Income Tax (Appeals)
We have heard Sri Shambhu Chopra, learned Standing Counsel for the Revenue. We find that this Court in I.T.R. No. 102 of 1987, C.I.T. Vs.. Sri Praveen Kumar, decided on 22nd November, 2004 has held that the amount of tax paid by way of advance tax during currency of the financial year even though the due date for payment of advance tax has expired is to be taken into consideration for interest purposes.
Respectfully following the aforesaid decision we are of the considered opinion that the Tribunal has not committed any error in upholding the order of the Commissioner of Income Tax (Appeals) deleting the levy of interest. We accordingly answer the questions referred to us in the affirmative i.e. in favour of the assessee and against the Revenue. There shall be no order as to costs.
Double Click on any word for its dictionary meaning or to get reference material on it.