- (1.) The Revenue has appealed against the judgment of the Madras High court rendered in commissioner OF INCOME TAX v. N. D. Georgopoules.
(2.) Stated briefly, for the Assessment Year 1965-66, the assessee filed a nil return. The return was accepted. The file was closed. The office also issued assessment form and a demand notice under Section 156 of the Act mentioning the amount demanded as "nil". The Income Tax Officer could not make the assessment for the year 1966-67, before the dates on which estimates of advance tax for the years 1967-68 and 1968-69 were due. For the Assessment Years 1967-68 and 1968-69, the Income Tax Officer took theview that the assessee was liable to furnish an estimate of advance tax for these two years and he failed to do so. He charged interest under Section 217 of the Income Tax Act for these two years.
(3.) The assessee contended that for the years 1967-68 and 1968-69 the assessee was not under an obligation to furnish "estimate" under Section 212 (3 of the Income Tax Act, since there was a regular assessment for the year 1965-66. The assessee also contended that the charge of interest was not proper. This plea was negatived by the Income Tax Officer and also by the Appellate Assistant Commissioner.;