9911796707
TMI Blog1991 (10) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,668 reducing the total income to Rs. 5,96,868. The Assessing Officer gave effect to the appellate order on October 4, 1988, and issued a refund order for Rs. 58,682. The Assessing Officer had refused registration of the petitioner firm at the time of original assessment but the appellate order granted continuance of registration. In the assessment year 1984-85, the petitioner was assessed on a total income of Rs. 5,21,497 by the Assessing Officer by his order dated March 27, 1987. The Assessing Officer had refused registration but the appellate authority, however, continued the registration though the total income computed by the Assessing Officer remained unchanged. The Assessing Officer gave effect to the appellate order on, October 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ("the Act" for short), worked out to Rs. 45,708 for the assessment year 1983-84, Rs. 36,168 for the assessment year 1984-85 and Rs. 21,210 for the assessment year 1985-86, aggregating to Rs. 1,03,086. The Assessing Officer not having awarded interest, as aforesaid, the petitioner has approached this court by way of this petition under article 226 of the Constitution seeking direction against the respondent-Assessing Officer to pay forthwith Rs. 1,03,086 together with interest from October 4, 1988. Section 214(1) of the Act under which the petitioner has claimed interest on the amounts refunded to him reads as follows: "214.(1) The Central Government shall pay simple interest at fifteen per cent. per annum on the amount by which the aggreg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in the case of Bardolia Textile Mills [1985] 151 ITR 389 [FB] that an assessment made in pursuance of a decision of an appellate authority is an assessment under section 143 of the Act. It was held that the quantum of excess tax has to be determined on the basis of the regular assessment. When the assessment is final, it is the regular assessment for the purpose of section 214(1) of the Act. Where the first assessment happens to be revised, the excess has to be determined with reference to such revised assessment. Interest is payable on such excess up to the date of such revised assessment. This, according to the Full Bench, was the scheme of section 214(1) of the Act. The Assessing Officer was bound to follow this Full Bench decision a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the excess amount refunded to it. It is, however, urged on behalf of the petitioner that the Assessing Officer ought to have awarded interest on the excess amounts refunded to it for the assessment years 1983-84, 1984-85 and 1985-86, on October 4, 1988, the date on which the excess amounts were refunded by giving effect to the appellate orders. The Assessing Officer, however, illegally withheld the interest payable to the petitioner. It is submitted that, since the retention or withholding of interest was without authority of law, the respondent is liable to pay interest on the amounts wrongfully withheld. According to the petitioner, so far as the assessment year 1983-84 is concerned, the respondent should be directed to pay Rs. 45,708 du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e giving effect to the appellate order and granting refund of the excess amount. If the excess tax paid cannot be retained without payment of interest, so also the interest which is payable thereon cannot be retained without payment of interest. Once the interest amount becomes due, it takes the same colour as the excess amount of tax which is refundable on regular assessment. Therefore, in our opinion, though there is no specific provision for payment of interest on the interest amount for which no order is passed at the time of passing the order of refund of the excess amount and which has been wrongfully retained, interest would be payable at the same rate at which the excess amount carries interest. In other words, the amount payable by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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