UNION OF INDIA Vs. SIKRI AND SONS

JUDGEMENT

(1.) This rule is at the instance of the revenue and it is directed against the order of the Presidency Divisional Commissioner.

(2.) On March 26, 1969, the Income-tax Officer, Companies District IV, Calcutta, " M " Ward, forwarded a certificate for the recovery of advance tax from the opposite party under Section 222(1) of the Income-tax Act, 1961, hereinafter referred to as the Act, for the sum of Rs. 6,926 in respect of the financial year corresponding to the assessment year 1967-68. The certificate was issued by the Income-tax Officer as the opposite party defaulted to pay the said sum of money on account of advance tax. The opposite party opposed the certificate proceeding by a petition of objection. It was, inter alia, contended by him that the Income-tax Officer had no jurisdiction to issue the certificate or to realise advance tax under the provisions of the Act. By his order dated April 8, 1969, the Income-tax Officer overruled the said contention and rejected the petition of objection. The Commissioner, Presidency Division, on appeal by the opposite party against the said order of the Income-tax Officer, took a different view. It was, inter alia, held by him that advance tax was not tax within the meaning of the Act and the same was not recoverable before the completion of the assessment. In that view of the matter, he allowed the appeal and set aside the certificate. Hence this rule.

(3.) The principal question that arises for our consideration is whether advance tax is recoverable before the amount of tax payable by the assessee is finally assessed. Section 207 of the Act provides for the advance payment of tax. Section 209 lays down the mode of computation of advance tax payable by the assessee for any financial year and Section 210 provides for the passing of an order for payment of advance tax by the assessee and issued a notice of demand under Section 156 pursuant to the order, specifying the instalments in which the advance tax is payable under Section 211. Under Sub-section (2) of Section 212, the assessee may send a revised estimate of the advance tax payable by him before any one of the dates specified in Section 211 and adjust any excess or deficiency in respect of any instalment already paid in a subsequent instalment or in subsequent instalments. Section 218(1) provides that if any assessee does not pay on the specified date any instalment of advance tax that he is required to pay under Section 210 and dees not, before the date on which any such instalment as is not paid becomes due, send under Sub-section (1) or Sub-section (2) of Section 212 an estimate or a revised estimate of the advance tax payable by him, he shall be deemed to be an assessee in default in respect of such instalment or instalments. The next relevant provision of the Act is Section 219 which is as follows :