1988 (11) TMI 40 - HC - Income Tax

Summary

The High Court of Punjab and Haryana ruled in favor of the assessee, Avery Freewheels (P.) Ltd., in a case concerning interest under section 214 of the Income-tax Act, 1961. The court held that the payment of the instalment by cheque on March 15, 1976, entitled the assessee to interest, as the cheque was encashed within the financial year. The Tribunal's decision was upheld, citing precedent that payment by cheque relates back to the date of receipt. The court answered the question of law in the negative, in favor of the assessee.