9911796707
TMI Blog1994 (4) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... elates to the assessment year 1972-73. The accounting period ended on March 31, 1972. The assessment for the year 1972-73 was completed on January 30, 1974. The taxable income was assessed at a loss. Subsequently, the assessee filed an application to the Income-tax Officer that it had paid advance (income) tax in respect of the assessment year in question on which it had become entitled to receive interest under section 214 of the Income-tax Act, 1961. As this interest had not been allowed to it the assessee requested that an order under section 154 may be passed and the interest under section 214 be allowed to it. The officer allowed a sum of Rs. 15,799 by way of interest for the amount paid by the assessee on December 30, 1971, March 20, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as referred the question of law formulated hereinabove for the decision of this court. Section 214 of the Act, as it stood at the relevant time, is as follows: " (1) The Central Government shall pay simple interest at fifteen 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 provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of advance tax and the payment would be reckoned fot the purpose of adjustment when final assessment is made. The payment made during the financial year is entitled to interest under section 214 of the Act even though the payment was made after the prescribed date but during the financial year. The Appellate Tribunal was justified in holding so. The order of the Appellate Tribunal does not suffer from any error of law. We, therefore, answer the question referred to this court in the affirmative, against the Revenue and in favour of the assessee. The reference is disposed of as above. A copy of this judgment shall be forwarded to the Income-tax Appellate Tribunal, "A" Bench, Patna, under the signature of the Registrar and the seal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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