Ajit K.Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1982-83, the following question of law has been referred to this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee was not liable to pay any interest under Section 216 of the Income-tax Act and thereby vacating the order of the Commissioner passed under Section 263 of the Income-tax Act, 1961 ?"
(2.) The facts leading to this reference are stated hereafter :
(3.) The assessee-company was taken over by Tata Iron and Steel Co. Ltd, For the period relating to the assessment year 1982-83 (the relevant accounting period being the year ending on March 31, 1982), the assessee filed a statement of advance tax under Section 209A(1)(a) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), declaring its income as nil, in view of the fact that the last regular completed assessment for the assessment year 1978-79 was computed as nil as the assessee was suffering a loss and in view of the further fact that, for the later assessment years 1979-80 to 1981-82, the assessee's total income as returned was also nil and there was no payment under Section 140A of the Act. The assessee, accordingly, did not deposit any tax for the first two instalments. However, before the last instalment (i.e., the instalment for the period ending March 25, 1982) was due, the assessee, on March 11, 1982, filed an estimate in Form No. 29 showing the estimated income of Rs. 4 crores and paid advance tax of Rs. 2,25,50,000.;