Interest u/s 215 cannot be levied if partner had paid advance tax in individual capacity on bonafide estimate of firm’s income

Brief of the case:

Punjab & Haryana High Court in CIT Vs M/s Mahesh Munjal HUF held that if the assesse had paid advance tax in his individual capacity after considering his estimated share in his firm’s income without any anticipation that the firm’s income on which he was paying advance tax was false then interest u/s 215 could not be levied. Moreover as the assesse had no reason to believe that the accounts of the firm in which he was partner was false and he had paid advance tax on the same. So as there was no malafide intention of the assesse to pay less advance tax so interest u/s 215 could not be levied.

Facts of the case:

Assessee had filed return of income in the status of HUF declaring income of Rs 42,810/-paid advance accordingly but the AO considered the income from firm in assesse’s individual capacity instead of HUF capacity. With this the advance tax should have been paid more than what assessee had actually paid. So AO levied interest u/s 215 for paying less advance tax which was challenged by assessee because he said that he was no reason to believe that the estimated income which assesse had estimated was incorrect.

Contention of the assesse:

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