9911796707
TMI Blog1991 (3) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. The assessee preferred appeal against the assessment, and on the basis of the relief granted by the CIT(A), the assessed figure was a loss of Rs. 6,678. The assessee moved an application for rectification under section 154. On the basis of this application, the finally assessed loss was Rs. 11,854. Thus the entire amount of tax, i.e., the advance tax, tax deducted at source and the additional demand raised were refunded to the assessee. The assessee by means of a letter datedSeptember 23, 1985claimed interest under sections 214 and 244(1A) of the Act. The Assessing Officer by means of his reply dated October 25, 1985 accepted the claim of interest under section 244(1A) of the Act, on the payment of Rs. 866, on the reasoning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection meant all such taxes as are paid either by way of advance tax or recovered from the assessee are in the nature of deposit till such date of adjustment made consequent to the assessment and therefore, the section indicated such taxes as payment made consequent to the assessment. He therefore contended that, what is contemplated by the Act has only been claimed by the assessee and the same was wrongly denied to it. He pleaded that, the Delhi High Court decision has been stayed by the Supreme Court and as per the Bombay High Court in Siemens India Ltd. v. K. Subramanian, ITO [1983] 143 ITR 120, the stayed decision would be inoperative within that State. He however pointed out that, it is unnecessary to consider that decision of theDelhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the opinion that, there is considerable merit in the argument advanced by the assessee. 6.1 Section 240 of the Act basically governs the grant of refunds consequent to the order by the appellate authorities, without the assessee having to make any claim for the refund. Section 242 of the Act provides that, the assessee shall be entitled to claim the refund of tax wrongly paid or paid in excess but would have no right to question the correctness of the assessment so framed. Section 244 provides for the payment of simple interest at 15 % in the event of the refund getting delayed beyond a period of three months from the date of grant of the refund. Section 244(1A) reads as under :-- "Where the whole or any part of the refund referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be framed after March 31, 1975, the excess tax so refunded would become entitled to the interest under section 244(1A) of the Act. Therefore, we are of the opinion that the material date being the date of regular assessment and if this date falls after March 31, 1975, the adjustment of advance tax made towards the tax payable on regular assessment after that date, has to be treated as payment made in pursuance of an order passed after March 31, 1975. Therefore, the assessee's claim of interest from the date of payment fill the date of assessment order being reasonable on the construction of the sections, the same is upheld. 6.2 On the claim of interest under section 214 of the Act, the reference in the said section being to the assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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