9911796707
TMI Blog1986 (12) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... ently, the assessee sought for interest on the amount of refund at Rs. 6,476. The ITO, however, held that the assessee had failed to pay the advance tax within time. Therefore, it was not entitled to any interest under s. 217 of the IT Act. It was quite clear that the advance-tax instalments were to be deposited on or before the 15th June, 15th Sept., and 15th Dec., He also referred to the Circula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concept under s. 214 being totally unconnected with deprivation of interest. The interest on excess advance-tax must be paid if the two conditions are satisfied. Another decision quoted in this behalf was decision of the Kerala High Court in Santha Shenoy vs. Union of India & Ors. (1982) 29 CTR (Ker) 127 : (1982) 135 ITR 39 (Ker). On behalf of the Department, reference was made to a decision of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d circumstances of the case we are of the opinion that the assessee is entitled to succeed. On merits, the consensus of authority is clearly in favour of the assessee. The only decision quoted by the Department i.e. Kangundi Industrial Works Pvt. Ltd. ITO (1980) 14 CTR (AP) : 378 (1980) 121 ITR 339 (AP) was specifically considered and dissented from by the Full Bench of the Kerala High Court in Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter on which he had already considered the issue and decided against the assessee. In other words, if the ITO had allowed the interest at the time of final assessment he could not withdraw it by proceedings under s. 154. The net result will be a very dangerous and it will be wholly in the discretion of the ITO to allow or not to allow interest in respect of instalments paid after the due date b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discretion of the ITO. He can make distinctions which will be with out any practical difference. This Bench has also been taking a view in favour of the assessee, so also was the decision in Anup Engg. Ttd. vs. ITO (1983) 36 CTR (Guj) 195 : (1984) 145 ITR 105 (Guj). Upon a consideration of these circumstances, we are of the opinion that the assessee should be granted interest when he has made sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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