COMMISSIONER OF INCOME-TAX Vs. ATLAS CYCLE INDUSTRIES

JUDGEMENT

(1.) THE Atlas Cycle Industries is the assessee and the matter relates to the assessment year 1972-73. Since the calendar year was the accounting year, it ended on December 31, 1971. On May 21, 1971, notice was issued by the Income-tax Officer under Section 210 of the Income-tax Act, 1961 (for short "the Act"), for payment of advance tax of Rs. 31,29,358. The assessee paid the amount as follows : Date of Amount deposit deposited Rs. 14-6-1971 4,63,340 14-9-1971 8,23,330 15-12-1971 6,43,330 2-3-1972 5,40,000 14-3-1972 61,750

(2.) UP to December 15, 1971, Rs. 19,30,000 was paid and Rs. 6,01,750 was paid thereafter in March, 1972. In this manner, till March 14, 1972, Rs. 25,31,750 was paid as advance tax, against the demand of Rs. 31,29,358. Since the accounting year ended on December 31, 1971, and less than 75 per cent, of the advance tax was paid by then on the balance, interest was charged by the Income-tax Officer under Section 215 of the Act.

(3.) THE assessee challenged the imposition of interest but on appeal the Commissioner of Income-tax (Appeals) deleted the levy of interest, and the Department failed before the Tribunal. On the aforesaid facts, at the instance of the Department, the Tribunal has referred the following question for the opinion of this court: "whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the interest under Section 215 was not chargeable in this case ?"