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1984 (11) TMI 163

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..... interest under s. 214 should be allowed to the assessee on the basis of the revised total income after appeal effect to the appellate order of the Tribunal. The ITO rejected the application filed by the assessee under s. 154 on two grounds, namely: (i) The word 'regular assessment' would mean assessment under s. 143 or 144 and it will not extend upto the dates of appeals, rectification or revision. (ii) The matter is not covered by s. 154 in view of the ratio laid down by the Supreme Court in the case of ITO vs. Volkart Bros. Ors. (1971) 82 ITR 50 (SC). 3. On appeal before the AAC, it was contended by the ld. counsel for the assessee that the assessee filed its return on 23rd June, 1973 declaring a total income of Rs. 72,780. The IT .....

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..... allowed by allowing the application of the assessee filed under s. 154. After hearing the ld. counsel for the assessee, the AAC directed the ITO to allow interest to the assessee for the reasons stated by him in his order. As against this order of the AAC, the Revenue is in appeal before us. 4. The ld. Departmental Representative contended before us that the AAC has held the point in issue in favour of the assessee and against the Revenue mainly following the decision of the Madras High Court reported in (1980) 16 CTR (Mad) 273 : (1980) 126 ITR 125 (Mad), wherein their Lordships of the Madras High Court have held that 'the ITO cannot pass any order under s. 250 of the IT Act, 1961. When, as a result of the AAC's order on appeal, the asse .....

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..... the ITO. 5. The ld. counsel for the assessee, on the other hand, relied on the decision of the Bombay Bench 'B' of the Tribunal, reported as IAC vs. Garware Paints Ltd. in (1984) 7 IDT 445 (Bom) wherein a similar point was held in favour of the assessee and against the Revenue. He further brought to out notice a note in the Bombay Chartered Accountants Journal in the issue of November, 1983 wherein the Supreme Court has dismissed the S. L. P. (Civil) No. 17 of 1981 filed by the department in the case of CIT vs. John Fleming Co. Ltd., against the order dt. 19th Feb., 1979 of the Bombay High Court in I.T.A. No. 220 of 1979 whereby the High Court had declined to call for a statements of case on the point where interest under s. 214 of the .....

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