1987 (7) TMI 80
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....ate Tribunal is correct in law in holding that the excess interest allowed under section 214 cannot be withdrawn by invoking the provisions of section 154 of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the later binding decision of the Andhra Pradesh High Court does not give rise to a mistake apparent from the record in the order already passed ? " For the assessment year 1973-74, the assessee paid advance tax of Rs. 11,380 which included a sum of Rs. 3,794 paid on March 27, 1973. While completing the original assessment, the Income-tax Officer treated the payment of Rs. 3,794 as advance tax payment and allowed interest under section 214....
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....e under section 256(1) of the Act. We are inclined to uphold the order of the Tribunal. The main argument of learned standing counsel for the Income-tax Department is that this court in Kangundi Industrial Works (P.) Ltd. v. ITO [1980] 121 ITR 339 (AP), held that any payment made by an assessee subsequent to the due date of instalment cannot be held to be an advance tax payment and, consequently, the assessee would not be entitled to claim interest under section 214 of the Act. Learned standing counsel points out that the aforesaid decision constitutes a binding authority so far as the State of Andhra Pradesh is concerned and, consequently, the Income-tax Officer would be justified in rectifying the assessment under section 154 of the Act.....