- (1.) THIS special appeal is directed against the judgment of Brij Lal Gupta J. dated September 6, 1961, dismissing Writ Petition No. 483 of 1957 filed by the appellant-petitioner, Messrs. P. C. Dwadesh Shreni and Company Limited, Aligarh (hereinafter referred to as the company).
(2.) THE Income-tax Officer demanded a certain amount of money as advance payment of income-tax under section 18A of the Income-tax Act. 1922 (hereinafter referred to as the Act), from the company. Admittedly, the company did not pay any part of the demand. The stand taken by it was that, being entitled to a certain refund and the amount of refund being in excess of the demand no payment was required to be made. In the writ petition and the affidavit filed in support of it, an averment was made that the sum of Rs. 7,415-5-0 out of the amount which the company was entitled to receive as refund was adjusted by the Income-tax Officer towards the payment of advance income-tax demanded from the company. This position is admitted on behalf of the income-tax department in the counter-affidavit. On the ground of default in payment of advance income-tax, the income-tax department determined the sum of Rs. 4,805 as payable by the company to the department as interest under section 18A(8) of the Act. The company filed an appeal, which was dismissed by the Appellate Assistant Commissioner on the finding that it was not competent. The Tribunal, on an appeal by the company. Affirmed the order of the Appellate Assistant Commissioner by dismissing the appeal. Thereafter, the company moved Writ Petition No. 483 of 1957 in this court which, as already state earlier, has given rise to this special appeal.
(3.) THE following two submissions have been made before us by Mr. Pachauri, who has appeared for the company: 1. That, on a correct interpretation of the provisions of section 18A(8) of the Act, no interest was liable to be paid by the company. 2. That, in any case, in the absence of an order determining the aforesaid amount of Rs. 4,805, the amount of Rs. 4,805 as interest is not chargeable. No other submission has been made before us. Section 18A which falls under Chapter IV and is headed as "Advance payment of tax", so far as relevant for our purposes, reads: "18A. (1)(a) In the case of income other than income chargeable under the head 'Salaries', the Income- tax Officer may, on or after the 1st day of April in any financial year, by order in writing, require an assessee to pay quarterly to the credit of the Central Government on the 15th day of June, 15th day of September, 15th day of December and 15th day of March in that year, respectively, an amount equal to one quarter of the income-tax and super-tax payable on so much of such income as is included in his total income of the latest previous year in respect of which he has been assessed,..... (6) Where in any year an assessee has paid tax under sub-section (2) or sub-section (3) on the basis of his own estimate, and the tax so paid is less than eighty per cent. of the tax determined on the basis of the regular assessment (reduced by the amount of tax deductible in accordance with the provisions of section 18 on any income, other than income chargeable under the head 'Salaries', included in such tax relates to income other than income chargeable under the head 'Salaries' and so far as it is not due to variations in the rates of tax made by the Finance Act enacted for the year for which the regular assessment is made, simple interest at the rate of six per cent. per annum from the 1st day of January in the financial year in which the tax was paid up to the date of the said regular assessment shall be payable by the assessee upon the amount by which the tax so paid falls short of the said eighty per cent... (8) Where, on making the regular assessment, the Income-tax Officer finds that no payment of tax has been made in accordance with the foregoing provision of this section, interest calculated in the manner laid down in sub-section (6) shall be added to the tax as determined on the basis of the regular assessment. Admittedly, even after the adjustment of the sum of Rs. 7,415-5-0 some amount of the demand of the advance income-tax remained due from the company. Mr. Pachauri contends that the words underlined by us falling in section 18A(8) of the Act show that the provisions of that section would apply only when the entire demand of advance income-tax has not been paid and not to a case where a part of the amount has been paid either in cash or by adjustment and only the balance remained to be paid. Mr. Pachauri lays stress upon the words "no payment of tax has been made".;