1987 (8) TMI 69

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..... acts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to interest under section 214 of the Income-tax Act, 1961 ? " The only point involved for decision is, whether the assessee is entitled to interest in accordance with section 214(1) of the Act on the amount of tax ordered to be refunded as a result of the order made by the Appellate As .....

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..... Revenue is that the expression "regular assessment " occurring in section 214(1) of the Act means the original order of assessment made by the Income-tax Officer and not the appellate order made by the Appellate Assistant Commissioner in a quantum appeal. There is a basic fallacy in this contention. In the first place, the order of the Appellate Assistant Commissioner in the quantum appeal is real .....

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..... assessment in existence as a result of the appellate order is that the order of the Income-tax Officer which is made in compliance with the directions given in the appellate order. This alone is sufficient to indicate that where the assessee is found entitled to a refund of the excess amount of tax deposited by him as a consequence of an order made in appeal, he is also entitled to interest in acc .....

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