9911796707
TMI Blog1978 (4) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... the AAC against the assessment order. The AAC reduced the income by Rs. 14,98,592(?) and also included additional income of Rs. 12,637. Thus, the revised business income of the assessee became Rs. 21,20,760. The ITO then passed an order dated March 17, 1971, under s. 251 of the Act calculating the tax at Rs. 9,68,567 against which the assessee had already paid advance tax of Rs. 12,56,466 and, after allowing the assessee Rs. 60,899 as interest under s. 214, calculated the total amount refundable at Rs. 3,48,798 to the assessee. Subsequently, the ITO thought that he had wrongly allowed the aforesaid interest and accordingly passed an order under s. 154 recomputing the amount refundable to the assessee at Rs. 2,87,899 by withdrawing the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 154 of the I.T. Act, 1961, in the order of the ITO, dated March 17, 1971 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was not entitled to interest under s. 214 of the I.T. Act, 1961 ? " Mr. Kalyan Ray, learned counsel for the assessee, argues before us that the expression "regular assessment" in s. 214(1) of the Act includes a revised assessment made by the ITO in compliance with the directions of the higher authorities. He further argues that a revised assessment can only be made under s. 143 of the Act in view of the Division Bench judgment of this court in the case of Kooka Sidhwa and Co. v. CIT [1964] 54 ITR 54 (Cal). Mr. Ray also cites the case of Chloride ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he basis of the section as it stood prior to the amending Act. Mr. Sengupta thereafter cites this case as an authority in support of his argument that the Chloride case [1977] 106 ITR 38 (Cal), which was decided long after the appellate order of the Tribunal, should not be taken into consideration in determining the question as to whether there could be two conceivable opinions on the point in issue before the Tribunal. The law is, however, well settled. The proceedings under s. 154 cannot be initiated if two opinions may conceivably be taken on the legal issue involved in it. Merely because the Chloride case [1977] 106 ITR 38 (Cal) was decided subsequent to the appellate order of the Tribunal, it cannot be said that it must be left out o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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