1997 (8) TMI 91

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....total income of Rs. 98,60,320. On 12th Aug., 1988, an order was passed giving consequential effect to the order of the CIT(A) for asst. yr. 1983-84 whereby the total income was reduced to Rs. 91,82,771. Then the assessee asked for interest under s. 214 upto 12th Aug., 1988 the AO rejected the plea. He held that the decision of the Gujarat High Court in the case of Bardolia Textile Mill vs. ITO (19....

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....rdolia Textile Mills and, therefore, the assessee is not entitled to interest on interest. The assessee's counsel however submitted that though the decision of the Gujarat High Court in the case of Bardolia Textile Mills has been overruled, the decision of Gujarat High Court in the case of D.J. Works vs. Dy. CIT (1992) 102 CTR (Guj) 2 : (1992) 195 ITR 227 (Guj), had not been overruled. It was subm....

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....other section of the Act cannot be made on the assumption that the interest has to be paid whenever an amount which has been retained by the tax authority in exercise of the statutory power becomes refundable as a result of any subsequent proceedings. It must be presumed that the legislature was aware of the wide interpretation of the word 'assessment' given under the Indian IT Act, 1922. "Assessm....

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...., that the assessee will get interest only till the date of the regular assessment. The only question that remains to be settled is whether the interest on the basis of the regular assessment is not given within the time, any further interest can be allowed on the same. We are of the opinion that it is not possible to hold that the decision of the Supreme Court by implication has overruled the dec....