1987 (4) TMI 42

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.... under section 256(1) of the Income-tax Act, 1961, raising, at the instance of the Revenue, the following question : " Whether, on the facts and in the circumstances of the case, interest is payable by the Government under section 214 of the Income-tax Act, 1961, up to the date of the original assessment or to the date of the rectification order ? " The only facts that need to be stated are ....

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....first day of April next following the said financial year to the date of regular assessment. 3. Interest under section 214 is, therefore, to be paid up to the date of regular assessment. Regular assessment has been defined in section 2(40) as assessment made under section 143 or section 144. It has been explained in Board's Instruction No. 921 dated February 12, 1946 (F. No, 404/8175-ITCC), tha....

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....motion, it might be argued that it is the rectified order which should be considered for the purposes of determining the tax payable on regular assessment. This is only reasonable. It is, therefore, felt that interest under section 214 can be altered with reference to the tax payable as per the rectified order under section 154. " Mr. Dalvi submitted that by reason of this instruction issued by....

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....es, the assessee is entitled to interest on the amount refundable by virtue of the order of rectification. Perusal of paragraph 3 of the instruction of the Central Board of Direct Taxes shows that the Central Board of Direct Taxes had taken the terminus for calculating interest under section 214 of the Income-tax Act, 1961, into account. It is stated that the terminus could not be altered merely b....