COMMISSIONER OF INCOME TAX Vs. GUJARAT FLOURO CHEMICALS

JUDGEMENT

(1.) The short point which arises in the present case is:

(2.) Advance Tax is leviable in the very year in which income accrues or arises. It is normally paid in three installments. A similar situation arises in the case of TDS. It is Tax Deductible at Source which is also called as 'Withholding Tax' Under Section 195 of the Income Tax Act, 1961 ['Act', for short]. Broadly, both Advance Tax as well as TDS are based on estimation of income by the Assessee.

(3.) The question which arises in this case is, whether interest is payable by the Revenue to the Assessee if the aggregate of installments of Advance Tax/TDS paid exceeds the assessed tax This controversy arises in a number of cases pending before this Court.