1994 (7) TMI 42

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..... umstances of the case, the Tribunal was legally justified in allowing interest on the entire refund of tax once under section 214 and then again under section 244(1A) of the Income-tax Act, 1961, whereas granting of interest under section 244(1A) is a debatable point and the provisions of section 154 were not applicable ? " The brief facts of the case are that the assessee is a partner in the firm of Messrs. Vasant Trading Co. The assessment under section 143(3) of the Income-tax Act was completed on an income of Rs. 82,940 on which a tax of Rs. 31,290 was determined, vide order dated November 13, 1979. After giving credit for tax deducted at source, advance tax payments and self-assessment tax, a balance of Rs. 7,711 was determined as p .....

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..... g any financial year in which they are payable under sections 207 to 213 exceeds the amount of the tax determined on regular assessment 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 the payment to the date of the regular assessment. Sub-section (2) of section 214 provides that on any portion of such amount which is refunded under Chapter XVII, interest shall be payable only up to the date on .....

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..... ion (1) thereof that where a refund is due to the assessee in pursuance of an order referred to in section 240 and the Income-tax Officer does not grant the refund within a period of three months from the end of the month in which such order is passed, the Central Government shall pay to the assessee simple interest at twelve per cent. per annum on the amount of refund due from the date immediately following the expiry of the period of three months aforesaid to the date on which the refund is granted. Section 244(1A) provides for payment of interest in pursuance of any order of assessment or penalty and such amount or part thereof having been found in appeal or other proceeding under the Act to be in excess of the amount which such assessee .....

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