1. These appeals by the assessee are consolidated for the sake of convenience and disposed of by the common order.
2 & 3. [These paras have been deleted from the text of the order as they deal with the issues in dispute which have been disposed of following earlier decision of the Tribunal.] 4. IT Appeal No. 991(Mds.) of 1980 - This appeal by the assessee is directed against the order of the Commissioner under section 263 holding that the assessee had been wrongly allowed interest of Rs. 12,350 (Rs. 14,612 less Rs. 2,262 withdrawn in the regular assessment) in the original assessment by the ITO under section 214 of the Income-tax Act, 1961 ("the Act"). The ITO, while completing the assessment under section 141A of the Act, had treated the payment of tax of Rs. 56,265 to be made by the assessee on the basis of the estimate filed by it on 10-3-1976 as "advance tax" and, accordingly, granyed interest under section 214, amounting to Rs. 14,612 on the refund of Rs. 56,265. The Commissioner held that the assessee not being a new assessee, the estimate was not filed under any of the provisions of section 212 of the Act and hence, the payment of tax of Rs. 56,265 based on the estimate filed by the assessee voluntarily on 10-3-1976 could not be considered as advance tax payment within the meaning of sections 207 to 213 of the Act. The Commissioner held that, therefore, the assessee is not entitled to the interest under section 214 and directed withdrawal of the interest originally granted. Before us the submission of the learned counsel for the assessee is that section 207 of the Act imposes on the assessee the liability to pay advance tax, though an old assessee is absolved to file the advance tax estimate voluntarily because of the requirement in section 210 that the ITO should issue advance tax notice to the old assessee, nevertheless the advance tax estimate voluntarily filed by the assessee constitutes a lawful estimate under section 207 and therefore, the assessee is entitled to interest on the advance tax paid in accordance therewith under section 214. The departmental representative, however, relied on the Commissioner's order.
5. After carefully considering the rival submissions we are of the view that the assessee's plea is not acceptable. Under section 207 tax shall be payable in advance in accordance with the provisions of sections 208 to 219 of the Act. Under section 210 (order by the ITO) where a person has been previously assessed by way of regular assessment under the 1961 Act or under the 1922 Act, the ITO may require the assessee to pay the advance tax determined in accordance with the provisions of sections 207 to 209 on the basis of a demand notice under section 156 of the act to be issued by him. Under section 212 (estimate by assessee) (1) if any assessee who is required to pay advance tax by the ITO's order under section 210 estimates that his income for the relevant financial year will be less than the income on which the advance tax payable by him has been demanded by the ITO he may at his option send to the ITO an estimate of his income and the advance tax payable in accordance therewith and pay the advance tax. Under section 212(3) any person who has not previously been assessed by way of regular assessment under the 1961 Act or the 1922 Act shall, in each financial year before the date on which the last installment of advance tax is due from him under section 211(1), send to the ITO an estimate of his current income on the advance tax payable thereon if such current income exceeds the limit specified in section 208(2) and shall pay such advance tax accordingly. Under section 212(3A) an assessee who is required to pay advance tax by the ITO's order under section 210 shall sent to the ITO an estimate of his current income and the advance tax payable by him on such current income, before the date on which the last installment of advance tax is due on him, if the assessee finds that the amount of advance tax payable by him on the current income estimated by him would exceed the amount of advance tax demanded from him by the ITO under section 210 by more than 33 1/3 percent of the latter amount. It would be seen from the above provisions that the assessee is required to file advance tax estimate to the ITO voluntarily only if he has not so far been assessed to tax under section 212(3). The provisions of section 212(1) and 212(3A) would apply only in the case of an old assessee on whom the ITO has already served an order for advance tax payment. In the present case the assessee being an old assessee, who has not admittedly been served with an order under section 210 by the ITO is not required under the statute to file any advance tax estimate voluntarily and pay advance tax thereon. Hence the estimate in the present case filed by the assessee and the tax paid by him thereon cannot be treated as advance tax within the meaning of section 214, but can be treated only as an ordinary deposit. We say so because section 214 enjoins that the Central Government shall pay interest at 12 per cent per annum on the amount by which the aggregate sum of the advance tax installments paid during any financial year in which they are payable under sections 207 to 213 exceeds the tax determined on regular assessment. In the present case, the so-called advance tax paid by the assessee is not payable under sections 207 to 213, including sections 210 and 212, having regard to the facts of the case narrated above. We therefore, agree with the Commissioner that the assessee is not entitled to interest under section 214 on the voluntary payment of such so-called advance tax made by him.