TaxTMI 
TaxTMI 
2004 (9) TMI 78
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.... Act. In order to put the aforementioned question in its proper perspective, a few facts would be necessary. The assessee-corporation was assessed to income-tax by the Income-tax Officer, Companies Circle, District-I, Patiala, who raised a demand of tax vide his notice dated May 20, 1976, issued under section 156 of the Act in pursuance of an order made by him under section 210(1) of the Act requiring the assessee-corporation to pay to the credit of the Central Government a sum of Rs. 27,68,546 by way of advance tax in three equal instalments. The dates for payment of instalments were also given being June 15, 1976, September 15, 1976 and December 15, 1976, which were as per the requirement of section 211 of the Act. The tax related to t....
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....declaring therein a loss of Rs. 12,07,404 for the assessment year 1977-78. A request was made to the Inspecting Assistant Commissioner of Income-tax (Assessment) (for brevity, "the assessing authority") for refund of the entire amount of tax of Rs. 2,75,000 which was paid as advance tax after making provisional assessment under section 141A of the Act. The assessee-corporation received a pay order for an amount of Rs. 2,75,000 by way of refund of advance tax which it had paid during the financial year 1976-77 for the assessment year 1977-78. On September 10, 1980, the assessing authority framed the regular assessment under section 143(3) of the Act which determined the business loss at Rs. 9,77,475 and depreciation allowable to the assessee....
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....learned counsel has argued that it is now well-settled by a catena of judgments including a Division Bench judgment of this court in the case of CIT v. Roadmaster Industries of India (P) Ltd. [1992] 193 ITR 639 that irrespective of the dates on which the instalments of advance tax are paid, interest would be payable to the assessee on the excess advance tax paid. According to learned counsel, the Division Bench of this court in the case of Roadmaster Industries of India [1992] 193 ITR 639 has laid down only two conditions that (a) the entire amount of advance tax has been paid, and (b) it is paid before the end of the financial year. There is no further condition that the instalments of advance tax must be paid in accordance with the dates ....
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....gment in D.J. Works' case [1992] 195 ITR 227 (Guj). According to learned counsel, a finding of fact is required to be recorded by some authority with regard to lack of bona fides on the part of the respondents and only then interest on interest could be awarded as was the case in D.J. Works [1992] 195 ITR 227 (Guj). Learned counsel has further pointed out that there is no provision for making payment of interest on interest in the Act. After hearing learned counsel for the parties, and perusing the Division Bench judgment of this court, I am of the considered view that there was no justification for the respondent-Department to deny the payment of interest on the second instalment to the assessee-corporation. The view taken by the Divisi....