9911796707
TMI Blog1991 (3) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... 30, 1973. Thereafter the same was set aside on revision on September 25, 1973 fresh assessment was made on January 25, 1975. A prayer for rectification was also made to the Income-tax Officer. Further, an appeal from the assessment was heard and disposed of on April 28, 1978. The order dated August 4, 1978, which I have mentioned in the beginning, gives effect to the decision in the appeal. From page 37 of the annexures to the writ petition it would appear that this same sum of Rs. 5,80,705 was the amount of interest which would be payable at the rate prescribed under section 214 for the period from April 1, 1970, to March 31, 1973, on a refundable amount of Rs. 19,35,685. It has been contended on behalf of the writ petitioner that now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pure law, I have entered into it, as a further order should be properly passed, as generally prayed for in prayer (e) of the writ. In so far as the first branch of the argument is concerned, the judicial authority is clear, in so far as a Single Bench of the Calcutta High Court is concerned, that regular assessment means the assessment order made after the appellate decision is put into effect by the Income-tax Officer. In Chloride India Ltd.'s case [1977] 106 ITR 38 (Cal), this has been so held and the decision was affirmed by a Division Bench of this court and the case is reported in CIT v. Chloride India Ltd. [1990] 186 ITR 217. In the judgment of justice Sabyasachi Mukharji reported in [1977] 106 ITR 38, there is a reference to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment is ultimately substituted by giving effect to an appellate decision, then the later assessment is in no manner irregular. It does not matter if the first assessment is also a regular assessment within the meaning of section 214. The assessee claims interest up to the date of the corrected order, and it would suffice if that order is a regular assessment, notwithstanding whether the first order is a regular assessment also or not. (2) The second point is that though fiscal legislation is to be read in a technical way, yet unless the ordinary laws of interpretation are excluded, the same would apply to interpret fiscal legislation as well as the legislation on any other field. If an advance tax paying assessee is kept out of refundab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Agricultural Co-operative Marketing Federation of India Ltd. v. Union of India [1981] 130 ITR 928. The case supports the contention that, under section 214(2), interest is to be paid to the assessee up to the date of refund. Mr. Pal said that a Madras case reported in Rayon Traders P. Ltd. v. ITO [1980] 126 ITR 135, supports his contention in so far as section 214, sub-section (2), is concerned but is against him so far section 214, sub-section (1), is concerned. I think that there is no reason Why interest should not be obtained up to the date of refund. In the practical world of facts, the correct assessment order of the Incometax Officer and the date of payment unfortunately will never coincide. Therefore, on that basis, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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