9911796707
TMI Blog1994 (2) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... at the instance of the Commissioner of Income-tax, Jodhpur, for deciding the following question of law, namely : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in directing the Income-tax Officer to grant interest under section 214 in respect of amount of tax refunded to the assessee ? " The relevant assessment years are 1980-81 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by learned standing counsel for the Revenue that the provisions of section 214 of the Act are attracted for the advance tax only and not for the tax deducted at source, there is no provision in the Act permitting payment of interest on the amount refundable from the amount of tax deducted at source and there is no place for equity in matters of tax. He relied upon Addl. CIT v. Bareilly Corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvance tax is paid on the estimated income for the current year on the basis of the previous year before the same is earned. Tax is deducted at source on the income already earned at the rate applicable on the amount which has actually fallen due and is paid. The amount of tax and the rate may vary when the total income is computed. Such is not the case with advance tax. A distinction has been cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1987] 167 ITR 306 (Raj), are quite different and distinguishable. It has been held in it that the payment of the amount of tax beyond time in pursuance of the order of the Supreme Court was deemed as a payment of advance tax and accordingly it allowed interest under section 214 of the Act. No question of payment of interest on the amount refundable from the tax deducted at source was involved in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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