9911796707
TMI Blog1992 (1) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of excess advance tax paid as modified from time to time as a result of appeal, rectification, revision, etc. An appellate order cannot be termed as a regular assessment and any refund arising as a result of the appellate order cannot be considered to be a refund of advance tax. In this petition, the petitioner has challenged the aforesaid order by filing this petition. For deciding the contentions in this petition it would be necessary to refer to the relevant facts. The relevant assessment year in this petition is 1973-74 which corresponds to the calendar year 1972. The petitioner paid advance tax of Rs. 68,69,155. The Income-tax Officer passed the provisional assessment order under section 141A on December 20, 1973. He computed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1961, as it was at the relevant time and arrived at the conclusion that interest on the excess of the advance tax refunded under section 214(1) of the Income-tax Act has to be paid up to the date of regular assessment. When the first assessment of the Income-tax Officer is final, that is the regular assessment for the purposes of section 214(1). Where the first assessment is set aside by the Appellate Assistant Commissioner on appeal and a fresh assessment is made, the excess will be determined with reference to such fresh assessment and interest has to be paid up to the date of such revised assessment. The court further held that even when on an appeal from the first assessment, the Appellate Assistant Commissioner does not set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment happens to be revised, the excess will be determined with reference to such revised assessment. Interest is payable on such excess up to the date of such revised assessment. This is the scheme of section 214(1) of the Income-tax Act. It seems that the Income-tax Officer has rejected the petitioner's application relying upon the decision of the Bombay High Court in the case of Sarangpur Cotton Manufacturing Co. Ltd. v. CIT [1957] 31 ITR 698 (Bom) and other such decisions. It is to be noted that the aforesaid decisions are distinguished by this court in the case of Bardolia Textile Mills v. ITO [1985] 151 ITR 389 (Guj) [FB]. The aforesaid Full Bench decision is binding on us. In this view of the matter, the order passed by the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refunded on a provisional assessment under section 141A, no interest shall be paid for any period after the date of such provisional assessment. " The proviso indicates that no interest shall be paid for the period after the date of provisional assessment. Hence, the petitioner could be entitled to interest till the order of provisional assessment is passed. In the result, the petition is allowed. The impugned order dated January 12, 1981 (annexure "H"), passed by the Income-tax Officer, Circle II, Ahmedabad, is quashed and set aside. The respondent is directed to pass appropriate orders under section 214(i) of the Income-tax Act by considering that regular assessment would include revised assessment as per the order of the Appellate As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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