COMMISSIONER OF INCOME TAX Vs. PURE BEVERAGES LIMITED

JUDGEMENT

(1.) AT the instance of the CIT, the Tribunal, Ahmedabad, has referred the following question of law arising out of its order passed in ITA No. 377/Ahd/1982 relating to the asst. year 1976 77:

(2.) HAVING heard the learned counsel for the parties, we are of the opinion that the answer to the question is squarely governed by the ratio laid down in the case of Shree Digvijay Woollen Mills Ltd. vs. CIT (1993) 114 CTR (Guj) 396 : (1993) 204 ITR 398 (Guj). The Division Bench with respect to charging interest on account of underestimate of advance tax, observed as under :

(3.) KEEPING the aforesaid decision in mind, we find that the Tribunal rightly observed that "in the present case, the sales of this year were much lower than in the previous year when the profits were Rs. 4,45,126 and that the assessee had material before him to show an estimate of even lower figure than Rs. 4,45,126''. According to the Tribunal, on the contrary, the assessee had shown an estimate of Rs. 6 lakhs. In view of this finding and as per the principles enunciated by this Court referred to above, the interest was not leviable as the same did not come within the purview of S. 216 of the Act. We, therefore, answer the question referred to us in the affirmative in favour of the assessee and against the Revenue. Reference stands disposed of accordingly with no order as to costs.