TaxTMI 
TaxTMI 
2004 (11) TMI 92
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....ee on the excess amount paid during the financial year on the date subsequent to the date fixed under section 211 of the Income-tax Act for payment of such instalment? 2. Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the interest under section 214(2) is payable to the assessee, from the date of the regular assessment to the date of making the refund, on the amount refundable as a result of excess amount paid only as a result of the proceedings under section 155 of the Income-tax Act, subsequent to the regular assessment?" Briefly stated the facts giving rise to the present reference are as follows: The reference relates to the assessment year 1974-75. The respond....
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....ection 154 of the Act whereby the claim under section 80C of the Act was allowed and the total income was reduced to Rs. 74,400 which converted the demand of Rs. 2,250 into refund of Rs. 413. Then again on December 17, 1982, there was a rectification under section 155 of the Act whereby the determined share from all the six firms were taken in place of share taken originally subject to rectification and the income was revised to Rs. 27,560. After adjusting taxes already paid a refund of Rs. 33,149 became due to the respondent. The Income-tax Officer also granted interest under section 214(1) of the Act at Rs. 5,472. Before the Income-tax Officer, the respondent claimed interest under section 214(1) of the Act till the date of regular assess....
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....e regular assessment to the date of making refund of the amount paid as a result of the proceedings under section 155 of the Act. Learned counsel for the respondent, however, submitted that any amount which is paid during the financial year even though it may be beyond the prescribed date is treated to be an advance tax and, therefore, interest had rightly been allowed by the Tribunal. According to him, in view of the proviso to section 211 of the Act, all amounts paid by way of advance tax on or before 31st March are to be treated as advance tax paid during the financial year. He further submitted that the Tribunal has also rightly allowed the interest under section 214(2) of the Act from the date of the regular assessment to the date of ....
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....arnataka State Warehousing Corporation Ltd. [1990] 185 ITR 25 and CIT v. Woodlands Hotel (P.) Ltd. [1998] 233 ITR 224, 227; the Kerala High Court in the cases of Santha S. Shenoy v. Union of India [1982] 135 ITR 39 and CIT v. Travancore Cements Ltd. [1995] 212 ITR 218; the Patna High Court in the case of CIT v. Kharsawan Mineral Concern (P.) Ltd. [1995] 213 ITR 270, 272; the Punjab & Haryana High Court in the cases of CIT v. Roadmaster Industries of India (P.) Ltd. [1992] 193 ITR 639 and CIT v. Agrawal Metal Works (P.) Ltd. [1998] 230 ITR 958, 960, the Rajasthan High Court in the case of Jai Drinks (P.) Ltd. v. CIT [1996] 217 ITR 404, 413, the Madras High Court in the cases of CIT v. T.T. Investments & Trades (P.) Ltd. [1984] 148 ITR 347, C....
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....d that any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax paid during the financial year ending on that date for the purposes of this Act. Thus, the amount paid by way of advance tax after the prescribed date but before the 31st March of that year is being treated as advance tax for all purposes of the Act. This amendment has been held to be clarificatory in nature by the Punjab and Haryana High Court in the case of CIT v. Roadmaster Industries of India (P.) Ltd. [1992] 193 ITR 639 and the Andhra Pradesh High Court in the case of Bakelite Hylam Ltd. [1993] 202 ITR 145 [FB]. We are in respectful agreement with the view taken by the various High Courts referred to above and hold that the amount....