1994 (2) TMI 11

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....x Act, 1961 (hereinafter to be called "the Act"), at the instance of the Commissioner of Income-tax, Jodhpur, for deciding the following question of law, namely : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in directing the Income-tax Officer to grant interest under section 214 in respect of amount of tax refunded to the assessee....

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....se references have been made. It has been contended by learned standing counsel for the Revenue that the provisions of section 214 of the Act are attracted for the advance tax only and not for the tax deducted at source, there is no provision in the Act permitting payment of interest on the amount refundable from the amount of tax deducted at source and there is no place for equity in matters o....

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....s the provisions relating to advance payment of tax. Advance tax is paid on the estimated income for the current year on the basis of the previous year before the same is earned. Tax is deducted at source on the income already earned at the rate applicable on the amount which has actually fallen due and is paid. The amount of tax and the rate may vary when the total income is computed. Such is not....

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....he facts and circumstances of CIT v. Jaipur Udyog Ltd. [1987] 167 ITR 306 (Raj), are quite different and distinguishable. It has been held in it that the payment of the amount of tax beyond time in pursuance of the order of the Supreme Court was deemed as a payment of advance tax and accordingly it allowed interest under section 214 of the Act. No question of payment of interest on the amount refu....