LAWS(CAL)-1993-1-33

COMMISSIONER OF INCOME TAX Vs. PIXRAY INDIA LTD

Decided On January 12, 1993
COMMISSIONER OF INCOME-TAX Appellant
V/S
PIXRAY (INDIA) LTD. (FORMERLY PICKER X-RAY (INDIA) LTD.) Respondents

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, the following question of law has fallen for determination by us :

(2.) Briefly, the facts leading to the question are as under : The assessee is a company and the assessment year involved is 1975-74, the accounting period ending on November 30, 1972. The Income-tax Officer raised an advance tax demand of Rs. 92,178 under Section 210 of the Act, payable in three equal instalments on June 15, 1972, September 15, 1972, and February 15, 1973. After receipt of the said demand notice, the assessee filed an estimate of its income before the Income-tax Officer on June 15, 1972, showing the advance tax payable at Rs. 58,695. On the basis of the estimate filed, the assessee paid two instalments of Rs. 19,565 each on June 16, 1972, and September 18, 1972. Before the third instalment was due to be paid, the assessee filed another estimate on December 30, 1972, wherein the income and the tax payable were shown at nil. The assessee filed the return on June 16, 1973, admitting a loss of Rs. 313. The Income-tax Officer determined the total income of the assessee at Rs. 41,188 in his assessment order dated January 27, 1976, and the tax payable at Rs. 28,110. In the notice of demand issued by the Income-tax Officer on the basis of the aforesaid assessment order, the Income-tax Officer allowed interest of Rs. 3,731 to the assessee under Section 214 of the Act in respect of the excess advance tax paid being the sum of Rs. 11,020.

(3.) Aggrieved by the assessment, the assessee preferred an appeal and the Appellate Assistant Commissioner, in his order dated October 3, 1977, allowed relief of Rs. 39,969.