1995 (1) TMI 116

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.... sale of tiles and other related products. In the assessment completed on 25-3-1986 the Assessing Officer did not take into consideration the enhancement of value of closing stock and determined the total income at Rs. 4,13,650. The tax payable after adjusting the advance tax paid was determined at Rs. 26,044. Subsequently, the Assessing Officer rectified the assessment, which resulted in a refund....

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....ance exceeded the advance tax paid there is no question of paying any interest under section 214. Thus, he dismissed the appeal of the assessee. 2. We have heard rival submissions and perused the materials on record. The learned representative of the assessee relied on section 214(1A) as amended by the Taxation Laws (Amendment) Act, 1984 with effect from 1-4-1985. His further contention is that....

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....6, which could mean that the assessment orders must have been passed long before that date. The assessment years concerned were 1967-68 to 1971-72. The amended provisions of section 214(1A) came into force with effect from 1-4-1985. Therefore, the Full Bench decision did not apply the amended provision in that case. In the course of the judgment, the Full Bench noticed in passing the amended provi....

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....e question of charging interest or granting interest can arise. Till the stage of determination of tax on the income assessed, the provisions applicable to the concerned assessment year will regulate the assessment procedure. As the levy of interest or granting of interest can arise only after the completion of the assessment, it cannot be considered as a substantive provision. Therefore, the law ....