2014 (6) TMI 673

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.... the Respondent : Sri S. R. Ashok ORDER (Per Honble Sri Justice Challa Kodanda Ram) This writ petition has been filed seeking to declare the action of the 1st respondent in not paying the interest from 1.4.1987 to 22.12.1998 to the petitioner under Section 214 read with other provisions of the Income Tax Act (for short, the Act) for the income-tax assessment year 1984-85 in the consequent....

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....as per the applicable rates and finally the same was arrived at Rs.8,35,325/-. These facts as set out in the affidavit filed along with the writ petition are not in dispute. In the present writ petition, the claim of the assessee is for payment of compensation on account of the delay in payment of the interest amount for the period from 31.03.1987 to 22.12.1998. The assessees claim for interest ca....

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.... by Order II Rule 2 of C.P.C. It was further contended that assuming, without conceding, that interest is payable, interest amount cannot be granted beyond the one contemplated by the Supreme Court in Modi Industries (supra). It was also further stated that the cause of action for the refund arose only when the Assessing Officer passed consequential order dated 07.10.1988 in pursuance of the appel....

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....nt of the Bombay High Court reported in 2004 (267) ITR 78 had extensively dealt with the issue and finally came to decide that under the Act, the Revenue is entitled to collect only tax, interest, penalty etc., within the four corners of the Act and any other amount which has been collected in excess would have the general character of the amount which amount if it is withheld beyond the period pe....