1. Heard counsel for the parties.
2. By this petition, the petitioner seeks quashing of impugned orders--annexures 5, 6 and 7 to the writ petition, passed by the Commissioner of Income-tax dismissing the revisions filed by the petitioner against the orders, passed by the Inspecting Assistant Commissioner charging interest under Sections 215, 216 and Section 220(2) of the Income-tax Act, 1961, (briefly 'the Act').
3. It is to be made clear that while passing the impugned order, annexure '7' to the writ petition upholding the order of the Inspecting Assistant Commissioner charging interest under Section 220(2) of the Act, no new reasoning was given by the Commissioner of Income-tax, but to pass that order he simply relied on his earlier orders annexures 5 and 6 to the writ petition.
4. The question for consideration before the Commissioner of Income-tax was whether interest under Sections 215, 216 and 220(2) of the Act was chargeable from the petitioner.
5. The material finding of the Commissioner of Income-tax, in the impugned order, annexure 5 to the writ petition, is as follows (paragraph 4) :
'4. I have considered these arguments. So far as the technical arguments based on the filing of the revised estimates are concerned it may be noticed that the provisions of Section 212(3A) require that the revised estimate be filed at any time before the date on which the last instalment of advance tax is due. The estimate should, therefore, have been filed by March 14, 1980. The estimate filed on March 15, 1980, cannot be considered.'
6. The submission of counsel for the petitioner before us is that after the amendment made by the Finance Act, 1979, with effect from April 1, 1979, Sub-section (3A) of Section 212 of the Act, is as follows :
'(3A) In the case of any assessee who is required to pay advance tax by an order under Section 210, if by reason of the current income being likely to be greater that the income on which the advance tax payable by him under Section 210 has been computed or for any other reason, the amount of advance tax computed in the manner laid down in Section 209 on the current income (which shall be estimated by the assessee) exceeds the amount of advance tax demanded from him under Section 210 by more than 33 1/3 per cent. of the latter amount, he shall, (on or) before the date on which the last instalment of advance tax is due from him, send to the Income-tax Officer an estimate of--. . .' (emphasis* supplied)
7. It is submitted that the words 'on or' preceding the expression 'before the date on which the last instalment of advance tax is due', occurring in Sub-section (3A) were inserted by the Finance Act, 1979, with effect from April 1, 1979, in Sub-section (3A) and that the amended subsection was relevant for the case of the petitioner, as the case relates to the assessment year 1980-81. There is no dispute before us that the last instalment of advance tax was due on March 15, 1980. If the amended Sub-section (3A) can be pressed into service, then it is clear that the petitioner could have filed estimate of advance tax on or before March 15, 1980. Admittedly, the estimate of advance tax was filed on March 15, 1980. It is urged that the Commissioner overlooking the amendment made in Sub-section (3A), erroneously, reached the conclusion that the estimate of advance tax could have been filed on or before March 14, 1980.
8. Similar reasoning was given by the Commissioner in the impugned order, annexure 6 to the writ petition, upholding the interest charged under Section 216. No new reasoning was given even in respect of the impugned order, annexure 7 to the writ petition, which relates to the interest charged under Section 220(2) of the Act.
9. From the impugned order, annexure 5 to the writ petition, passed by the Commissioner which contains detailed reasons, it is manifest that the Commissioner overlooked the amendment inserting the important words 'on or' in Sub-section (3A) of Section 212 of the Act. This is a serious omission on the part of the Commissioner and the matter required reconsideration.
10. In the result, the writ petition is disposed of finally, impugned orders annexures 5, 6 and 7 to the writ petition are quashed and the case is remitted to the Commissioner of Income-tax, respondent No. 1, with the observations that he shall consider Sub-section (3A) of Section 212 of the Act, as it stood amended by the Finance Act, 1979, with effect from April 1, 1979, and then pass an order afresh in accordance with law in regard to interest sought to be charged under Sections 215, 216 and Section 220(2) of the Act.