9911796707
TMI Blog1995 (8) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... the motion stage, learned counsel for the respondent submitted that in view of the Full Bench decision of the Gujarat High Court reported in Bardolia Textile Mills v. ITO [1985] 151 ITR 389, the judgment of this court in CIT v. Leader Engineering Works [1989] 178 ITR 529 required reconsideration. He has further contended that, as against the orders earlier passed by this court, the Supreme Court have granted the special leave petition, the judgment aforesaid required reconsideration. The facts as disclosed in the petition are that the respondent-assessee filed its return of income-tax for the relevant year, which was subsequently revised. Consequently, the assessee filed an application claiming interest under sections 244(1A), 214 and 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding to section 214 of the Income-tax Act, the Central Government is liable to pay simple interest at the rate of 15 per cent. per annum on the amount by which the aggregate sum of any instalments of advance tax paid during any financial year in which they are payable under sections 207 to 213 exceeds the amount of the assessed tax, from the 1st day of April next following the said financial year to the date of the regular assessment for the assessment year immediately following the said financial year, and where any such instalment is paid after the expiry of the financial year during which it is payable by reason of the provisions of section 213, interest as aforesaid shall also be payable on that instalment from the date of its payment t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rks [1989] 178 ITR 529 considered the scope of section 244(1A) of the Income-tax Act and held (at page 531) : " Section 244(1A) provides that if an assessee is entitled to refund of an amount as a result of the appellate order or other proceedings under the Act, the assessee is entitled to interest at the specified rate on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted. This provision further notices that the provision will relate to the amounts having been paid after March 31, 1975. Since the advance tax was paid before March 31, 1975, the claim of the Revenue was that section 244(1A) was not applicable, whereas the case of the assessee was that the payment of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1A) of the Act, the assessee is entitled to interest thereon at the rate specified in section 244(1) of the Act. " The view taken by this court is stated to have been followed by the Bombay High Court in the case of Cyanamid India Ltd. v. K. N. Anantharama Ayyar [1993] 203 ITR 561, by the Kerala High Court in Asian Techs Ltd. v. Deputy CIT [1995] 213 ITR 378 and the Delhi High Court in National Agricultural Co-operative Marketing Federation of India Ltd. v. Union of India [1981] 130 ITR 928. The Full Bench of the Gujarat High Court in the case of Bardolia Textile Mills v. CIT [1985] 151 ITR 389 is shown to have taken a contrary view. The mere fact that the Full Bench of the Gujarat High Court has taken a different view from the one take ..... X X X X Extracts X X X X X X X X Extracts X X X X
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