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TMI Blog1997 (9) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... n upholding the Commissioner of Income-tax (Appeals) order that the assessee is entitled to interest under section 244(1A) of the Income-tax Act on the amount of Rs. 65,281 being preassessment tax paid and found in excess of regular demand after giving effect to the appellate order?" Shortly stated, the facts relevant to the controversy in this reference petition are : For the assessment year 1976-77, relevant to the accounting period from October 1, 1974, to September 30, 1975, the assessee had paid a sum of Rs. 4,44,145 as advance tax. Rs. 91,755 were paid as self-assessment tax. The total of both these amounts comes to Rs. 5,35,900. The Income-tax Officer framed the regular assessment under section 143(3) of the Act on August 30, 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax (Appeals) accepted the appeal. It was held by the first appellate authority that the assessee was entitled to interest on the balance amount of Rs. 65,281 as well under section 244(1A) of the Act from April 1, 1976, till the date of refund. This order of the Commissioner of Income-tax (Appeals) was upheld by the Tribunal. On a petition filed by the Revenue under section 256(1) of the Act, the Tribunal has referred the question of law, reproduced in the earlier part of the judgment, to this court for its opinion. There is no appearance on behalf of the respondent. Mr. B. S. Gupta, senior advocate, appearing for the Revenue, fairly concedes that the question referred to this court has to be answered in the affirmative, i.e., agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount so found to be in excess was paid in instalments, such interest shall be payable on the amount of each such instalment or any part of such instalment, which was in excess, from the date on which such instalment was paid to the date on which the refund is granted : Provided further that no interest under this sub-section shall be payable for a period of one month from the date of the passing of the order in appeal or other proceeding : Provided also that where any interest is payable to an assessee under this sub-section, no interest under sub-section (1) shall be payable to him in respect of the amount so found to be in excess." In Modi Industries' case [1995] 216 ITR 759 (SC), their Lordships had exhaustively dealt with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the refundable amount under section 244(1A). For the purpose of this section, the amount of advance payment of tax and the amount of tax deducted at source must be treated as payment of income-tax pursuant to an order or assessment on and from the date when these amounts were set off against the tax demand raised in the assessment order, in other words, the date of the assessment order. (iii) With effect from April 1, 1985, interest payable under section 214 will increase or decrease in accordance with the variation in the quantum of the excess payment of tax brought about by orders passed subsequent to the regular assessment as mentioned in sub-section (1A)." We are concerned with the second conclusion arrived at by their Lordships. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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