PATEL ENGINEERING COMPANY LIMITED Vs. C B RATHI

JUDGEMENT

(1.) The petitioner is a Public Limited Company incor- porated under the provisions of the Companies Act 1956 The petitioner is carrying on the business of manufacturing oil engines water pumps etc. The petitioner also carries on the business of exporting oil-engines manufactured by it.

(2.) The petitioner is assessed to income-tax under the Income-tax Act 1961 (hereinafter referred to as the Act). The question arising for determination in the instant case relates to Assessment year 1975-76 the relevant previous year being Samvat Year 2030.

(3.) The petitioner having been previously assessed to income-tax by way of regular assessment under the Act the Income-tax Officer having jurisdiction over the petitioner made an order under sub-sec. (1) of sec. 210 of the Act requiring the petitioner to pay advance tax in the sum of Rs. 89 438 on the basis of the total income of Rs. 1 55 715 in respect of which the petitioner was assessed to incometax for the Assessment Year 1973-74. The notice of demand dated 13/05/1974 issued in pursuance of the said order specified that the said advance tax was payable in three equal instalments of Rs. 29 813 each during the Financial Year 1974-75. In compliance with the said notice the petitioner paid two instalments of advance tax on June 15 and 15/09/1974 However as the current income of the petitioner was likely to be greater than the income on which the advance tax payable by it had been computed the petitioner sent to the Income- tax Officer an estimate of the current income under sec. 212(3A) and therein the current income was estimated at Rs. 2 10 336 Be it stated that according to the petitioner the current income was estimated at Rs. 2 10 336 after taking into consideration the deduction allowable under sec. 358 of the Act that is to say the export markets development allowance. The said estimate was sent before the date on which the last instalment of advance tax fell due that is to say before 15/12/1974 The petitioner also calculated in the manner laid down in the relevant provisions of the Act the advance tax payable by it on such current income and paid within time a sum of Rs. 61 879 as and by way of the final instalment of advance tax in accordance with such calculation. The petitioner accordingly paid a total sum of Rs. 1 21 505 by way of advance tax.