We have referred to the judgment under appeal in the body of the judgment and for the reasons recorded therein, the appeal is dismissed.
So far as the claim for interest on excess advance tax paid is companycerned, his case was that once the original order of assessment was set aside by the appellate authority and a revised assessment order was made pursuant to the appellate order, it is that assessment which is the regular assessment for the purposes of Section 18A 5 and, therefore, he is entitled to interest till that date, viz.,
A similar direction will issue with respect to the assessment year 1977 78, with the difference that the date of companymencement of interest will be the first day of that assessment year.
On that basis, it held that the assessee was entitled to grant of interest on the advance tax refunded upto the date of the rectified assessment order.
An assessment was made hereinafter referred to as the Original Assessment Order on March 30, 1948, according to which the assessee became liable to pay a further tax of Rs.6,00,000/ in addition to the advance tax amount already paid.
The assessee laid a claim for interest on the excess amount of advance tax paid as well as on the amount of Rs.6,00,000/ paid pursuant to the original assessment order from the respective dates of payment till the date of refund.
Since the facts relating to both the assessment years are similar except the amounts companycerned it would be enough if we state the facts relating to the assessment year 1976 77.
Accordingly, the Income Tax Officer made a fresh assessment on January 25, 1954 hereinafter referred to as the Revised Assessment Order according to which the total assessable income was substantially reduced.
CIVIL APPEAL NO.4581 OF 1990 In this appeal, three assessment years are involved, viz.,
The question relating to payment of interest under Section 214 was number entertained by the High Court.
LEGISLATIVE BACKGROUND Prior to 1944, income tax was payable by the assessee only on an assessment being made by the Assessing Officer.
The companytroversy, however, arose with respect to the period for which interest is payable under Section 214.
During the financial year relevant to the said Assessment Year, the assessee paid advance tax in a sum of Rs.12,95,508/ in three equal instalments.
The Income Tax Officer refunded the excess amount of tax paid.
The assessee claimed interest on the excess amount of tax paid upto the date of refund both under Section 214 as well as Section Meanwhile, sub section 1A of Section 244 had also companye into force with effect from October 1, 1975.
The same view was re affirmed in Triplicane Urban Society v. Commissioner of Income Tax, Madras 126 I.T.R.125 .
This companytention was rejected by Chagla, C.J., speaking for the Division Bench.
1973 74, 1974 75 and 1975 76.
The Division Bench held that the original assessment order as rectified is the regular assessment order or the companyrect assessment order, as it may be called.
The Commissioner of Income Tax, Bombay, City VI, the respondent No.1, shall pass appropriate orders accordingly.
The tax number payable was less than the amount of tax paid as advance tax.
In the appeals preferred by the appellant, the Appellate Assistant Commissioner and the Tribunal granted reliefs to the appellant as a result of which the entire amount of Rs.9,62,500/ along with a sum of Rs.94,787/ being the tax deducted at source was refunded to the appellant.
The appeal is preferred against the judgment of a learned Single Judge of the Bombay High Court rejecting the writ petition Writ Petition No.Before the High Court, the assessee gave up his claim for interest on the sum of Rupees six lakhs.
The Appellate Assistant Commissioner set aside the assessment and directed the Income Tax Officer to make a fresh assessment.
It was a case where the original assessment order was rectified by the Income Tax Officer under Section 154.
The appellant paid an amount of Rs.9,62,500/ by way of advance tax during the financial year relevant to the said assessment year.
He paid it and preferred an appeal to the Appellate Assistant Commissioner against the order of assessment.
The assessment year companycerned was 1968 69.
The appeals are allowed in the above terms.
The assessee came up on appeal to this Court only on the question of number payment of interest under Section 214.
There shall be numberorder as to companyts.
The Income Tax Officer made an assessment according to which the tax payable was determined at Rs.29,56,303/ .
In the light of the principles set out hereinabove, the appellant shall be entitled to interest under Section 214 1 for the period companymencing from April 1, 1976 upto the date of the regular assessment as interpreted by us hereinbefore on the amount of excess advance tax found to have been paid as per the regular assessment.
In the writ petition, challenging the aforesaid decision of the Commissioner, rule nisi was issued only in respect of number payment of interest under Section 244 1A .
If the writ petition before the High Court is pending on the question of Section 244 1A , it should be disposed of on the basis of the principles laid down in this case.
January 25, 1954.
It should, however, be numbered that the Respondent No.
No companyts.
CIVIL APPEAL NOS.5550 51 OF 1990 The assessment years companycerned in these appeals are 1976 77 and 1977 78.
This was, however, a case where the assessment order was modified, i.e., revised pursuant to the appellate order.
