1985 (9) TMI 105

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.... made on 7th July 1981 at a negative figure and so the entire tax paid was refunded. However, no interest under s. 214 was granted. The assessee therefore made an application to the ITO who passed an order under s. 154 dt. 30th Nov., 1981 granting interest amounting to Rs. 99,099 under s. 214 upto that date. The order quantifying the amount of interest was passed on 7th Feb., 1983 and both these o....

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.... to be considered is whether the ITO's order granting refund of Rs. 99,099 is of 30th Nov., 1981 or of 7th Feb., 1983. In my opinion the order under s. 154 dt. 30th Nov., 1981 directed for the issue of refund order in respect of interest under s. 214. Quantification of such interest also forms part of that order. That quantification has been done much later as evidenced by the demand notice dt. 7t....

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.... in the case of National Agricultural Co-operative Maketing Federation of India Ltd. vs. Union of India & Ors. (1981) 130 ITR 928 (Del) and the Tribunal's decision in the case of Mihir Textiles Ltd. vs. ITO in ITA No. 8/Ahd/1983 dt. 24th Oct., 1983. 4. The ld. Department representative relied upon the order of the CIT (A). 5. From the above quotations of the CIT (A)'s order it appears that w....

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....not correct to say that it became due to the assessee only on 7th Feb., 1983. Regarding the CIT (A)'s reasoning that s. 154 action cannot be taken, we are of the view that this is not a debatable issue. To our mind the position is clear i.e. interest has to be paid to the assessee on the amount over paid to the time that the over payment is actually refunded. In this view we are fully supported by....