1990 (7) TMI 33

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....t they refused to pay full interest under section 214 of the Act as also the refusal of the respondents and/or that in action to pay interest under section 244 of the Income-tax Act for the assessment year 1982-83 and all proceedings thereunder and in pursuance thereof on the ground that the petitioner is entitled under the law to interest on the I amount which is refundable to the petitioner after giving effect to the order of the Commissioner of Income-tax (Appeals) and, as such, in view of the decision of the Hon'ble High Court at Calcutta in the case of Chloride India Ltd. [1977] 106 ITR 38, which is already affirmed by the Appeal Court, the petitioner is entitled to interest under section 214 of the Act on the said amount up to the dat....

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....e case of Chloride India Ltd. v. CIT as reported in [1977] 106 ITR 38 (Cal), Sabyasachi Mukharji J. (as His Lordship then was), clearly held that the obligation under section 214 of the Income-tax Act is to pay interest on the amount by which the advance tax paid exceeds the tax determined on regular assessment. An order which is made by the Income-tax Officer to give effect to the order of the Appellate Assistant Commissioner is an order of assessment under section 143. If that is the position, then, in view of section 2(40) of the Act, the regular assessment as contemplated by section 214(1) should be the assessment made by the Income-tax Officer initially or the first assessment made by the Income-tax Officer if there is no appeal theref....