TMI Blog1989 (2) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment on January 27, 1977. The assessee had paid advance tax before March 31, 1975, and the advance tax was adjusted against the liability created by the aforesaid assessment order. On the assessee's appeal, the tax liability was reduced and the excess amount was refunded. The assessee claimed that the Income-tax Officer should have allowed interest on the refunded amount under section 244(1A) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand assessed was a payment for the purpose of allowing interest under section 244(1A) of the Income-tax Act ?" For the decision of question No. 2, which is the main question, sections 219 and 244(1A) deserve consideration. Section 219 provides for credit for advance tax and the payment of advance tax has to be treated as payment of tax in respect of income of the period which would be the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was paid before March 31, 1975, the claim of the Revenue was that section 244 ( 1 A) was not applicable, whereas the case of the assessee was that the payment of tax would be deemed to have been made on January 27, 1977, when the regular assessment was made by adjustment of the advance tax towards the tax liability created by the regular assessment order dated January 27, 1977, and, therefore, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar assessment for the assessment year immediately following the said financial year. This further shows that after adjustment of advance tax at the time of regular assessment, if some balance remains to the credit of the assessee, that balance is treated as advance tax and the amount adjusted therefrom is treated as payment of tax. If the amount adjusted towards tax is found refundable in pursuan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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