1981 (8) TMI 92

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....3 was adjusted towards this demand. The assessee filed an appeal before the AAC and by an appellate order dt. 24th Sept., 1977 some relief was allowed and the tax payable by the assessee was reduced to Rs. 38,548. There was a further appeal to the Tribunal which decided the appeal in February, 1979 and the tax payable was determined after the order of the Tribunal at Rs. 30,487. As a consequence of the orders giving effect to the appellate orders the ITO refunded the amount found to be paid in excess. However, according to the assessee, interest under s. 244(1A) should also have been allowed in respect of these refunds but such interest had not been allowed. The assessee, therefore, filed an application under s. 154 before the ITO submittin....

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....itted that the order of the CIT (A) is wrong on merits and the ld. CIT (A) has also erred in not meeting the objection raised by the IAC of Income-tax that the provisions of s. 154 were not attracted. It was contended that the assessee's claim was based on the plea that payment of tax included payment by way of adjustment also and according to him this was a debatable view and the claim of interest on this interpretation could not be considered to be free from doubt. It was, therefore, contended that the provisions of s. 154 are ruled out. It was also contended that the learned CIT (A) has not disposed of this objection and should be directed to do so. 5. On merits, it was submitted that the provisions of s. 244(1A) referred to the payme....

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....to him the provision of law was clear. From the order issuing refund it was clear that interest had not been allowed and if such interest is due under the law the non-allowance of such interest could be a mistake apparent from record. Now the question for consideration is whether such interest was due within the meaning of s. 244 (1A). That sub-section reads as under. "244(1A) Where the whole or any part of the refund referred to in sub-s. (1) is due to the assessee, as a result of any amount having been paid by him after the 31st March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assess....