9911796707
TMI Blog1996 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1991 and 921/Ind, of 1990, to this court for its opinion : "(i) Whether, on the facts and in the circumstances on the case, the Tribunal was justified in allowing interest under section 214 read with section 244(1A) of the Income-tax Act, 1961, even when section 214(1A) has come into effect from April 1, 1985, only? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the regular assessment for the purpose of section 214(1A) is the last assessment and not the first assessment?" Briefly stated the facts of the case are that the assessee-company for the assessment year 1977-78 was first assessed to tax on income of Rs. 17,58,830 vide assessment order dated July 17, 1979. On the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer to recompute income after verifying the facts and properly give appeal effect. On the question of payment of interest, the Commissioner of Income-tax (Appeals) gave the following direction : "As per tax working it is noted that though a refund of Rs. 16,200 has been worked out as due to the assessee, but no interest payable under section 244(1A) has been worked out. Therefore, the Assessing Officer is directed to allow interest under section 244(1A) read with section 214 as per law." Aggrieved by the aforesaid directions, the Revenue had filed an appeal before the Tribunal being I. T. A. No. 921/Ind. of 1990, and the following ground had been raised : "On the facts and in the circumstances of the case, the learned Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). Hence, the assessee's appeal is dismissed." Aggrieved by the aforesaid order of the Commissioner of Income-tax (Appeals), the assessee came up in second appeal before the Tribunal which were registered as I. T. A. Nos. 558/Ind. of 1991. Both the appeals were heard together and disposed of by a common order dated November 11, 1993. The Tribunal held that the assessee is entitled to interest under section 214(1) read with section 244(1A) of the Act on the excess advance tax paid from the date of the regular assessment. It further held that "regular assessment" for the purpose of section 214(1A) is the last assessment and not the first assessment, With these findings, the appeal filed by the assessee was allowed but that of the Revenue was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of tax as a result of any subsequent proceeding. But with effect from April 1, 1985, while the period for which interest was payable remained constant, the amount on which the interest was payable, varied with the variation in the quantum of refund as a result of any subsequent orders. (ii) If any tax is paid pursuant to an assessment order after March 31, 1975 (which will include tax deducted at source and advance tax to the extent the same has been retained and treated by the Income-tax Officer as payment of tax in discharge of the assessee's tax liability in the assessment order), and becomes refundable wholly or in part as a result of any appellate or other order passed, the Central Government will have to pay the assessee interest o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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