ORDER :

1. The short point which arises in the present case is:

What is the character of Tax Deductible at Source (TDS)/Advance Tax under the Income Tax Act, 1961?

2. Advance Tax is leviable in the very year in which income accrues or arises. It is normally paid in three installments. A similar situation arises in the case of TDS. It is Tax Deductible at Source which is also called as `Withholding Tax' u/s 195 of the Income Tax Act, 1961 [`Act', for short]. Broadly, both Advance Tax as well as TDS are based on estimation of income by the Assessee.

3. The question which arises in this case is, whether interest is payable by the Revenue to the Assessee if the aggregate of installments of Advance Tax/TDS paid exceeds the assessed tax? This controversy arises in a number of cases pending before this Court.

4. The Assessee before us has relied upon the judgment of a Division Bench of this Court in the case of Sandvik Asia Ltd. Vs. Commissioner of Income Tax-I, Pune and Others, AIR 2006 SC 1223. That was a case relating to payment of Advance Tax. The main issue which arose for determination in Sandvik Asia [supra] was, whether the Assessee was entitled to be compensated by the Revenue for del