9911796707
TMI Blog1999 (4) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year 1979-80 when there is no previous year is valid in law and that the assessee is entitled to interest under section 214 of the Income-tax Act is sustainable in law, having regard to the provisions of sections 3(1) and 4 of the Income-tax Act, 1961 ?" The assessee-company carries on business in manufacture and sale of engine valves. It had paid advance tax, during the 12 month period preceding March 3 1, 19 79, which 12 month period was its financial year at the time of payment. However, on June 27, 1979, it applied to the Income-tax Officer seeking permission to change its accounting year 1o June and permit the profits for the period of April 1, 1978 to June 30, 1979, to be offered, for assessment in the assessment year 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paid in view of the change in the accounting year. The Tribunal, to whom the assessee appealed, has set aside the order of the Commissioner and restored the order of the Income-tax Officer. The Revenue being aggrieved by it is now before us. We have heard counsel for the parties. The questions referred to us are similar to the questions reference of which is sought by the Revenue in T.C.P. No. 410 of 1986 and that T. C. P. is also being disposed of by this order. The questions referred to us in the T. C. P. are treated as having been referred to us. Those questions axe raised for the assessment year 1979-80 and those questions are also answered by this order. The facts referred to by us earlier clearly show that for the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d been paid earlier while being refundable to the assessee, the assessee had not acquired any right to claim interest on these amounts under section 214 of the A3K, Interest under that provision is allowable only in respect of the amount paid as advance tax during any financial year in which "they are payable under sections 207 to 213" of the Act, if the amount so paid exceeds the amount of assessed tax. After having obtained permission from the Income-tax Officer to offer income for a 15 month period for the assessment year 1980-81, the assessee cannot contend that the assessed tax for the assessment year 1979-80 is "0" that the entire amount paid as advance tax between April 1, 1978 to March 31, 1979, is an amount which is in excess of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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