9911796707
TMI Blog1992 (3) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... come of the petitioner at Rs. 92,54,730 and tax thereon was assessed at Rs. 53,44,670. The petitioner had paid Rs. 67,77,554 as advance tax and tax deducted at source was Rs. 909. Therefore, the sum refundable was worked out at Rs. 14,33,856. Earlier, by an order dated May 29, 1976, passed under section 141A of the Act, the Income-tax Officer had actually refunded Rs. 18,97,404. As the amount actually refunded was more, the Income-tax Officer raised a demand for Rs. 4,63,548. On the refundable sum of Rs. 14,33,856, the petitioner was granted Rs. 14,339 as interest under section 214 of the Act. The net sum payable by the petitioner was determined at Rs. 4,49,209. Against the order of assessment dated October 16, 1976, the petitioner preferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction got vested in the Inspecting Assistant Commissioner and, therefore, instead of the Income-tax Officer passing consequential order, the Inspecting Assistant Commissioner, the respondent, passed an order on November 13, 1984. The interest granted was Rs. 1,69,858. The Department was aggrieved by the order of the Tribunal passed on August 19, 1980, and, therefore, got a reference made to this court. In that reference, being I.T.R. No. 350 of 1981, the Department succeeded. Therefore, the Inspecting Assistant Commissioner, on September 19, 1985, passed a consequential order (exhibit 'K') fixing the revised total income at Rs. 91,04,377. He also passed an order in these terms : "Withdraw interest granted under section 244(1A), if any". H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer was not justified in withdrawing the interest granted earlier by him under section 244(1A) of the Income-tax Act ? " As the Tribunal declined to refer that question to this court, the Revenue has filed Income-tax Application No. 3 of 1992, under section 256(2) of the Act. The amount of interest paid to the Ahmedabad New Cotton Mills Company Limited and sought to be withdrawn is Rs. 3,297. As the question involved in Special Civil Application No. 6274 of 1985 and Income-tax Application No. 3 of 1992 is the same, the Bench issuing " rule" on the application directed that it be heard with the Special Civil Application. As the learned advocates desired that both be disposed of together, we are disposing of both by this common judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der is passed in final appeal or proceeding and, as a result thereof , it is found that the assessee has paid more than the tax payable under the Act. Therefore, interest paid to the assessee under section 244(1A) pending final determination becomes refundable to the Government, if, as a result of the final order, it is found that the same or any part thereof was not payable to the assessee. It was, therefore, open to the Assessing Officer to recover the same under section 244(1A), or under section 143 or 158 of the Act. If we turn to section 244(1A), a bare reading of the same would make it clear that it provides for grant of interest to the assessee on the excess amount of tax paid by him. It does not provide for withdrawal of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability during pendency of further appeal or other proceeding. Therefore, the contention raised by learned counsel for the Revenue in this behalf cannot be accepted. It is also difficult to appreciate how the interest paid under section 244(1A) would become refundable under section 143 as it stood at the relevant time. Even under section 156 of the Act, the interest paid under section 244(1A) cannot be ordered to be refunded. That section provides that when any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under the Act, the Assessing Officer shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable. The order which is contemplated by that sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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