1984 (9) TMI 129

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....vance tax over tax assessed Rs. 2,188.00 (2) Interest under s. 214(1) from 1st April, 1978 to 27th Jan., 1981 @ 12% (22 * 33) Rs. 726.00 (3) Interest under s. 214(2) from 28th Jan., 1981 to 20the May 1982 (22 * 16) Rs. 374.00 . . Rs. 3,288.00 According to the assessee, there was thus a shortfall of Rs. 713 in the refund granted to the assessee. The assessee preferred an appeal before the AAC but it was dismissed by the order under appeal by holding that no appeal lays as this was no a claim under s. 237. 2. We have heard the ld. counsel for the assessee and the ld. Departmental Representative. The ld. counsel contended that under s. 246 of the IT Act, an appeal against an order passed under s.....

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....t. This arguments may look only specifically correct but, on a proper appreciation of the various provisions of the Act, it would be clear that s. 237 would govern no only the principal amount of excess tax but also the interest thereon. It was conceded that while the Act provides in various sections the payment of interest by the Government on refunds, due, there is not independent section providing for the machinery or the produce for the payments of interest thereon. Sec. 237 provides for the refund of tax and makes the order applicable. Therefore, s. 237 has to be read in harmony with the other provisions of the Act like s. 214, which provides for payment of interest and the amount of interest due on the excess tax would partake the nat....