1980 (10) TMI 32

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tal income, but declined to grant any relief regarding payment of penal interest on the following ground: " In the last ground, charge of interest u/s. 215 is challenged. This ground is incompetent as there is no provision for appeal u/s. 246 against the charge of interest. The same is, accordingly, dismissed." The assessee went in appeal before the Income-tax Appellate Tribunal, Amritsar Bench (hereinafter referred to as " the Tribunal "), which allowed the same and, qua the relief of interest, observed as under: " The last ground by the assessee in this appeal is that the Appellate Assistant Commissioner was not justified in holding that the charge of interest under section 215 of the Income-tax Act, 1961, is not appealable under .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... per cent. of the assessed tax, simple interest at the rate of twelve per cent. per annum from, the 1st day of, April next following the said financial year up to the date of the regular assessment shall be, payable by the assessee upon the amount by which the advance tax so, paid, falls short of the assessed tax. (2) Where before the date of completion of a regular assessment, tax is paid by the assessee under section 140A or otherwise: (i) interest shall be calculated in accordance with the foregoing provision up to the date on which the tax is so paid; and (ii) thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax as so paid (in s far as it relates to income subject to advance tax) falls short .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... all cases covered by sub-s. (3) of s. 215 of the Act and, of course, the first appeal to the AAC and, second appeal to the Tribunal being covered by this sub-section, even if the appellate order does not mention the re-payment of the excess interest to the assessee, the ITO is bound to return the excess interest to the assessee in view of the mandate given in sub-s. (3) of s. 215 of the Act. This mandate having been given by the Legislature, it became unnecessary to make any provision for appeal as regards the re-payment of interest in this regard. In this background, it would be seen that the AAC, instead of holding that the assessee will be entitled to the return of the interest in view of the provisions of sub-s. (3) of s. 215 of the Act .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X