2001 (3) TMI 87

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....the total taxable income of Rs. 4,86,164. Being aggrieved, the assessee went in appeal to the first appellate authority. The appeal was allowed vide order dated December 11, 1987. While giving effect to the order of the Commissioner of Income-tax (Appeals), the Assessing Officer granted to the assessee a refund of. Rs. 3,22,211 which included interest under section 214 amounting to Rs. 90,402. This order was passed on October 24, 1988. At this stage, it may be noted that section 214 of the Act was amended by the Taxation Laws (Amendment) Act, 1984, with effect from April 1, 1985, and by virtue of the amending Act, sub-section (1A) was substituted. In other words, the Assessing Officer passed the order giving effect to the order passed by th....

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....prior to the Taxation Laws (Amendment) Act, 1984, interest was payable only from the date on which the order of regular assessment was passed and since in the present case the order has been passed on July 25, 1983, the Assessing Officer erred in granting interest under section 214 from April 1, 1980. He, therefore, contended that the order passed under section 154 withdrawing the benefit of interest has been correctly passed. Findings : We do not find any merit in this appeal. In this appeal, we are concerned with the assessment year 1980-81. Sub-section (1A) was substituted in section 214 with effect from April 1, 1985. It not only refers to the appellate orders under section 250 and section 254 but it also refers to several other o....