| Case ID |
0bd0fbc6-9e76-49f2-958a-95ec00edc1c1 |
| Body |
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| Case Number |
Income-tax Reference No.3 of 1993 |
| Decision Date |
Jun 20, 1996 |
| Hearing Date |
|
| Decision |
The court affirmed the Tribunal's decision that mere underestimation of advance tax was not sufficient to impose interest under section 216 of the Income Tax Act, 1961. The Assessing Officer must ascertain whether the underestimation was deliberate and intended to reduce the tax burden. The Tribunal found no evidence of bad faith in the assessee's underestimation, leading to the conclusion that the interest charged was unjustified. |
| Summary |
This case revolves around the interpretation of section 216 of the Income Tax Act, 1961, concerning the imposition of interest on underestimation of advance tax. The Gauhati High Court examined whether the mere act of underestimating advance tax was enough to warrant interest charges. The court emphasized that there should be a deliberate intention behind such underestimation to reduce tax burdens. The decision highlighted the necessity for assessing authorities to investigate the motives behind advance tax estimations, ensuring that penalties are not imposed without clear evidence of intent to evade tax obligations. This case is significant for taxpayers and legal practitioners as it clarifies the conditions under which interest can be charged, promoting fairness in tax assessments. Keywords such as 'Income Tax Act', 'underestimation of tax', 'interest on advance tax', and 'Gauhati High Court' are crucial for SEO optimization in legal discussions. |
| Court |
Gauhati High Court
|
| Entities Involved |
Not available
|
| Judges |
D.N. BARUAH,
S.B. ROY
|
| Lawyers |
G.K. Joshi,
U. Bhuyan,
Dr. A.K. Saraf,
K.K. Gupta
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
LANKASHI TEA AND SEED ESTATE (P.) LTD
|
| Citations |
1998 SLD 306,
1998 PTD 2437,
(1996) 222 ITR 133
|
| Other Citations |
CIT v. Elgin Mills Co. Ltd. (1980) 123 ITR 712 (All.),
CIT v. Namdang Tea Co. India Ltd. (1993) 202 ITR 414 (Gauhati),
Oudh Sugar Mills Ltd. v. CIT (1994) 210 ITR 692 (Bom.)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
216
|