9911796707
|
Home
Issues:
Claim for interest under section 214 of the Income-tax Act, 1961 for the assessment year 1977-78. Analysis: For the relevant assessment year 1977-78, the Income-tax Appellate Tribunal forwarded questions regarding the entitlement of the assessee to interest under section 214 of the Income-tax Act, 1961. The case involved a claim for interest on refund amounts from various assessment orders. The assessee received refunds through provisional assessment, an order under section 143(3), and a rectification order under section 154 of the Income-tax Act. The Income-tax Officer initially granted interest only up to the date of the provisional assessment, but the assessee contended that interest should be paid up to the date of the refund orders. The Commissioner of Income-tax (Appeals) directed the Income-tax Officer to allow interest up to the date of the regular assessment. The Tribunal held that interest is payable up to the date of the rectification order based on relevant decisions and a Board's circular. The Tribunal referred two questions to the High Court for opinion regarding the interest payable to the assessee. The High Court considered the Supreme Court decision in Modi Industries Ltd. v. CIT [1995] 216 ITR 759, which was found to be applicable to the present case. The High Court ruled in favor of the Revenue, stating that the assessee is entitled to interest on the various amounts from April 1, 1977, up to the date of the orders that entitled the assessee to refunds. The reference for opinion was decided in favor of the Revenue against the assessee for the assessment year 1977-78, with no order as to costs.
|
