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TMI Blog1976 (12) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... nce tax paid during any financial year in which they are payable under sections 207 to 213 exceeds the amount of the tax determined on regular assessment, from the 1st day of April next following the said financial year to the date of the regular assessment for the assessment year immediately following the said financial year, and where any such instalment is paid after the expiry of the financial year during which it is payable by reason of the provisions of section 213, interest as aforesaid shall also be payable on that instalment from the date of its payment to the date of the regular assessment." The Taxation Laws (Amendment) Ordinance, 1967 (Ordinance No. 5 of 1967), was promulgated by the President of India on September 14, 1967. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereafter. According to the Income-tax Officer, he has to do so because the interest at 9 per cent. was payable only for the period on or after October 1, 1967. The assessee filed an application before the Income-tax Officer under section 154 of the Act requesting him to rectify his order by calculating interest at 9 per cent. throughout, namely, from April 1, 1967, onwards up to the date of assessment. The Income-tax Officer declined to make any rectification. Against that order, the assessee preferred an appeal, to the Appellate Assistant Commissioner. That officer allowed the appeal and he held that the Taxation Laws (Amendment) Act, 1967, simply changed the rate of interest from 6 per cent. to 9 per cent. and never provided that the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... force on the date when the assessment is completed will be the only provision that will be applicable with regard to payment of interest on the said excess amount. As we have pointed out already, in this case the assessment was completed on November 30, 1968. The Income-tax Officer himself awarded interest at the rate of 9 percent. from October 1, 1967. However, he took the view that for the period from April 1, 1967, to September 30, 1967, the assessee was entitled to interest only at 6 per cent. per annum. We are unable to find any justification for this attitude on the part of the Income-tax Officer. As a matter of fact, after October 1, 1967, the only statutory provision in force with reference to payment of interest is section 214 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two per cent. per annum on any amount payable in accordance with the provisions of this section before the 1st day of April, 1955, and paid accordingly; (ii) at four per cent. per annum on any amount payable in accordance with the provisions of this section after the 1st day of April, 1955, and paid accordingly ; from the date of payment to the date of the provisional assessment made under section 23B, or if no such assessment has been made, to the date of the assessment (hereinafter called the 'regular assessment ') made under section 23 of the income, profits and gains of the previous year for an assessment for the year next following the year in which the amount was payable." Consequently, if the intention of the legislature was to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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