Ajit K. Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1984-85, the following two questions of law have been referred to this court : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the facts found by the learned Commissioner of Income lax (Appeals) were correct though the assessee company had not filed statement of advance tax as required under Section 209A(1)(a) of the Income tax Act, 1961 ?
(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the order of the learned Commissioner of Income-tax (Appeals) cancelling the interest charged under Section 217(1A) of the Income-tax Act, 1961, by the Assessing Officer for non-filing of the statement of advance tax under Section 209A(1)(a) ibid?" The facts leading to this reference are that, in the course of assessment proceedings, the Assessing Officer found that the company was an old income-tax assessee and that it was required to file a statement pf advance tax under Section 209(1)(a) of the Income tax Act, 1961, by September 15, 1983. The statement of advance tax was required to be filed in Form No. 28A under Rule 38A of the Income-tax Rules, 1962, The assessee had not filed the statement of advance tax as required by the provisions of the law in vogue. Instead of filing the statement of advance tax in Form No. 28A, the assessee-company filed an estimate of advance tax in Form No. 29 under Rule 39 of the Income-tax Rules, 1962, on September 20, 1983, declaring the advance tax liability at " nil ". Again, on December 12, 1983, the assessee-company filed another estimate in Form No. 29 showing the advance tax liability at "nil". Then, another estimate in Form No. 29 was filed on March 14, 1984, showing its advance tax liability at Rs. 2,16,375 and the assessee made payment of Rs. 2,01,938 on March 15, 1984, as advance tax. Thereafter, the return of income for the assessment year 1984-85 was filed on July 31, 1984, showing a total income of Rs. 14,89,850 and the tax liability on the total income of Rs. 14,89,850 at Rs. 8,45,241. Out of the tax liability of Rs. 8,45,241, Rs. 3,85,596 was shown as tax deducted at source and advance tax paid Rs. 2,01,938 and the balance amount of Rs. 2,57,707 was paid on July 30, 1984, being payment under Section 140A of the Income-tax Act, 1961. 2. Subsequently, a revised return showing a total income of Rs. 22,00,397 was filed on August 18, 1986, under the Central Board of Direct Taxes' Scheme disclosing higher income.
(3.) In the course of assessment proceedings, the Assessing Officer also found that as the assessee-company had failed to submit the statement of advance tax as required under the provisions of Section 209A(1)(a) of the Income tax Act, 1961, the assessee company was liable to pay interest under Section 217(1)(a) of the Income-tax Act, 1961. Thus, the Assessing Officer charged interest under Section 217(1)(a) amounting to Rs. 1,13,392.;