2001 (8) TMI 24 - HC - Income Tax

Summary

Issues involved:
The judgment addresses three main issues: entitlement to interest under section 244(1A) for interest payments under sections 215, 217, and 220(2) of the Income Tax Act for the assessment years 1973-74 to 1975-76; entitlement to interest under section 214 on advance tax payments for the assessment years 1977-78 and 1978-79; entitlement to interest under section 244(1A)/214 on tax payment made under section 140A of the Income-tax Act, 1961 for the assessment years 1977-78 and 1978-79.

Entitlement to interest under section 244(1A) for interest payments under sections 215, 217, and 220(2) of the Income Tax Act for the assessment years 1973-74 to 1975-76:
The first question referred at the instance of the Revenue pertains to whether the assessee is entitled to interest under section 244(1A) for interest payments under sections 215, 217, and 220(2) of the Income Tax Act. The court, after considering relevant decisions, including those from the Madras, Madhya Pradesh, and Kerala High Courts, ruled in favor of the assessee, citing consistency with previous judgments. The court answered the question in the affirmative, in favor of the assessee and against the Revenue.

Entitlement to interest under section 214 on advance tax payments for the assessment years 1977-78 and 1978-79:
The second question raised by the Revenue concerns whether the assessee is entitled to interest under section 214 on advance tax payments. Both parties agreed that this issue is settled by the decision of the apex court in Modi Industries Ltd. v. CIT, which favored the assessee. Consequently, the court answered this question in the affirmative, in favor of the assessee and against the Revenue.

Entitlement to interest under section 244(1A)/214 on tax payment made under section 140A of the Income-tax Act, 1961 for the assessment years 1977-78 and 1978-79:
The final question in the reference, raised by the assessee, pertains to whether the assessee is entitled to interest under section 244(1A)/214 on tax payment made under section 140A of the Income-tax Act, 1961. The court, guided by decisions from the apex court and various High Courts, including Punjab and Haryana and Karnataka, found no reason to deviate from the established view. Consequently, the court answered the question in the affirmative, in favor of the assessee and against the Revenue. The reference was disposed of accordingly.