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Interest u/s. 215 and 217. - Income Tax - 422/CBDTExtract INSTRUCTION NO. 422/CBDT Dated: June 7, 1972 Section(s) Referred: 215 ,217 Statute: Income - Tax Act, 1961 A question has been raised whether interest u/s. 215 and 217 of the I.T. Act can be enhanced on variation of assessed income as a result of appeal, revision or rectification. 2. There is no provision in the I.T. Act for enhancement of interest u/s. 215 and 217, whereas there is a specific provision for reduction in section 215(3). There cannot, therefore, be an enhancement of interest as a result of appeal etc. The remarks of Rajamannar C.J. in Natarajan Chettiar v. I.T.O.-42.ITR.29 support this view. 3. As regards the question of calculating the interest u/s. 215 and 217, it should be calculated from the 1st day of April, next following the previous year upto the date of regular assessment. Regular assessment means assessments made u/s. 143 or 144 only. 4. These instructions may please be brought to the notice of all the officers working in your charge.
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