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TMI Blog1992 (8) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... rd the parties to the dispute. At the time of hearing, the counsel for the assessee has invited our attention to the decision of the Bombay High Court in the case of CIT vs. Tata Chemicals reported in (1987) 63 CTR (Bom) 54 : (1988) 169 ITR 314 (Bom). That was a case where advance tax paid was not taken into account when passing the regular assessment order. When the matter was brought to the notice of the ITO an order under s. 154 was passed by the ITO. As a result of this order, it was found that the assessee had paid advance tax in excess of tax payable by it and the same had to be refunded. However, no interest was granted by the Assessing Officer. In reference, the High Court held that the assessee would be entitled to interest on refu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 155(1) itself, wherein, it has been held that the Assessing Officer can amend the order of assessment with a view to including correct share of income, and the provisions of s. 154 shall, so far as may be, apply thereto, in the light of this discussion, we are of the opinion that the claim of the assessee is well founded and in that view direct the ITO to allow interest on the excess advance tax refunded by reason of the order under s. 155(1). 3. That takes us to the appeals filed by the Department. These are appeals against the order of the CIT(A) directing the ITO to grant interest under s. 244(1A) from the date on which the advance tax was adjusted against the demand to the date of payment of the refund. Here again, we have heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer to treat the advance tax payment as a payment in pursuance of an order of assessment passed by him. It only requires that the same is to be treated as a tax on income of the previous year and credit is to be given on completion of regular assessment. In this connection it would be profitable to look at the provisions of s. 140A. Under that section the ITO is to regard the self-assessment tax as a payment towards regular assessment. The advance tax and self-assessment tax are both in the nature of pre-paid taxes. While in the case of advance tax, credit is required to be given after treating the same as payment towards income of the previous year, in the case of self-assessment tax, the amount paid is to be deemed as having been pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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