TaxTMI 
TaxTMI 
1986 (10) TMI 53
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....title for interest under s. 244(1A)of the IT Act. As both appeals have been heard together and common points are involved, a consolidated order is passed for the sake of convenience. 2. In respect of asst. yr. 1977-78 the assessee consequent to the order of the CIT(A) dt. 2nd June, 1982 became entitled to a refund of Rs. 85,845 which was granted on 26th Nov., 1982. The aforesaid refund included a sum of Rs. 84,515 being the advance tax and self-assessment tax under s. 140A paid prior to the assessment and a sum of Rs. 1,330 being the interest charged under s. 215. It appears from the order under s. 154 passed by the ITO that a demand of Rs. 16 was raised at the time of the original assessment after notification. After receiving the re....
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....nds were found due for both the years. It was further argued that advance tax and tax under s. 140A are taxes which are deemed to have been paid on regular assessment and were, therefore, entitled to interest under s. 244(1A). For this proposition reliance was placed on the following two decisions of the Tribunal and a decision of the Hon'ble Delhi High Court : (1) National Agricultural Co-op. Marketing Federation of India Ltd. vs. Union of India & Ors. (1981) 130 ITR 928 (Del). (2) ITO vs. J.K. Synthetics Ltd. (1984) 8 ITD 601 (Del), Tribunal Bench Delhi (3) Smt. K. Mahalakshmamma vs. ITO (ITA No. 1637 and 1638 (Hyd) (Hyderabad Bench 'A' of 1982), 1984 Tax 73 (23) (Hyd. Trib). The ld. CIT(A) after considering the arguments of t....
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....under s. 214 and partly for interest under s. 244(1A). Although there is no mention of interest under s. 214 in the orders of the ITO as well as in the grounds of appeal before the CIT(A), we do observe that the CIT(A) has considered the matter under both these sections. As there is no objection on the part of the Department, we proceed to decide the matter accordingly. 7.1. It is quite apparent from the order of the CIT(A) that he has placed strong reliance on the three decisions cited before him including the one of Hon'ble Delhi High Court reported in (1981) 130 ITR 928 (Del). We however find that this decision has been dissented from by the Hon'ble Gujarat High Court in the case of Bardolia Textile Mills. The following observations o....
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....r : "Of course, we do not, with great respect, agree with the Delhi High Court that s. 244 (1A) must be interpreted on the principle of equity and "equality" as entitling payment of interest even on advance-tax, since advance tax would become regular tax on the assessment by virtue of s. 219 of the IT Act. The learned Judges are conscious of the fact that this would be putting a strain on the language of s. 244 (1A). We have discussed in this judgment earlier that s. 244(1A) covers an entirely different field in that it only refers to the payment of interest on tax made pursuant to an assessment order and not tax paid as advance tax. Sec. 214 and 244 (1A) are, as it is, complementary to each other and those sections are to be understood ....