2006 (7) TMI 122

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....e to hold as to what was the date of assessment. This was a question of fact which was not required to be examined in an appeal under section 260A of the Act. The High Court also noticed that the decision of this court in Modi Industries Limited v. CIT [1995] 216 ITR 759 was clearly applicable to the facts of the case. According to learned counsel for the appellant, the High Court failed to notice that the decision in Modi Industries' case [1995] 216 ITR 759 (SC) has no application to the facts of the present case. The true ambit of section 244(1A) of the Act has not been kept in view by the High Court. It is pointed out that in the assessee-appellant's own case for the immediately succeeding assessment year, i.e., 1987-88, the Tribunal ....

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....s paying a sum of Rs. 1,61,52,472 plus Rs. 21,71,121 by way of commission in respect of purchases made by the Department of Electronics, Government of India, from M/s. Sumitomo Corporation, the aforesaid Japanese company. The amount was paid at London in the account of M/s. Allied Petro Agencies. The information was passed on by the Government of India to the Income-tax Department. In the meantime, i.e., on August 17, 1987, a letter was written by the assessee to the Commissioner of Income-tax, Delhi-III wherein it admitted the commission income of Rs. 1.61 crores odd and offered to pay tax thereon. The Assessing Officer, however, had already completed the assessment and since commission income had not been included in the returned incom....

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.... such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted: Provided that where the amount so found to be in excess was paid in instalments, such interest shall be payable on the amount of each such instalment or any part of such instalment, which was in excess, from the date on which such instalment was paid to the date on which the refund is granted: ....