TaxTMI 
TaxTMI 
1998 (7) TMI 15
X X X X Extracts X X X X
X X X X Extracts X X X X
....umstances that forced them to file the present writ petition and requested this court to allow the writ petition as prayed for. Whereas on behalf of the respondent, though no counter affidavit has been filed, they have argued the matter. Heard learned counsel appearing for the respective parties. I have perused the contents of the affidavit and all other relevant material documents that are available on record in the form of typed set of papers. I have also taken into consideration the various points raised by learned counsel appearing for the parties during the course of their arguments. In such circumstances, the only question that arises for consideration in this writ petition is as to whether there are any valid grounds to allow t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....evised the order twice on January 30, 1988, and February 20, 1988, giving effect to a rectification under section 154 and a revision of the assessment by the Commissioner of Income-tax under section 263 of the Income-tax Act. The petitioner has paid the taxes as demanded as a result of these revisions. Subsequently, the petitioner filed an appeal against the order of the Commissioner of Income-tax under section 263 of the Act. The Inspecting Assistant Commissioner of Income-tax also filed an appeal against the order of the Commissioner of Income-tax (Appeals). Both these appeals were disposed of by the Income-tax Appellate Tribunal, Madras Bench "D" on March 21, 1988. The appeal of the petitioner has been allowed by the Tribunal and that of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Commissioner of Income-tax after giving credit to the tax deducted at source and advance tax payments the revision resulted in a refund of Rs. 8,30,281. The assessee requested for grant of interest under section 214 on this refund amount up to the date of revision and that was rejected by the then Inspecting Assistant Commissioner of Income-tax (Assessment). Aggrieved by the said rejection, the assessee/petitioner herein has filed a revision before the respondent herein and in which he has passed the order impugned in this writ petition. At this stage, it is relevant to extract section 214 of the Income-tax Act, 1961, which is dealing with the subject "interest payable by Government" which runs as follows : "214. (1) The Central Gov....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ingly. (2) On any portion of such amount which is refunded under this Chapter, interest shall be payable only up to the date on which the refund was made." From the above it is clear that interest is liable to be paid in respect of the excess amount paid in relation to the tax ultimately determined as payable by the petitioner. In this case, it is significant to note that the original assessment was made on March 1, 1984, under section 143(3) read with section 144B and the tax payable thereon was determined at Rs. 23,72,673 and during the previous year the petitioner had paid advance tax under the provisions of the Act in a sum of Rs. 13,00,000. Now the claim made by the petitioner is only on the refund amount. Even as per the impugne....
X X X X Extracts X X X X
X X X X Extracts X X X X
....therefore, for which the interest has to be paid remains the same, i.e., the first day of the relevant assessment year to the date of the regular assessment (first assessment). But, the quantum of interest payable will depend upon the amount of refund payable after the quantum of tax has been payable is finally determined in appeal, revision or any other proceeding." Further it has been specifically stated by the Supreme Court as follows : "With effect from April 1, 1985, interest payable under section 214 will increase or decrease in accordance with the variation in the quantum of the excess payment of tax brought about by orders passed subsequent to the regular assessment as mentioned in sub-section (1A)." In the present case it ....