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TMI Blog1985 (12) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... ation made under s. 154, submitted that it is a clear case of refund, which is due to excess payment of advance-tax on which interest under s. 214 is payable. This fact is verifiable from the records on which there can be no two opinions. In respect of the interest under s. 244(1A), since the refund arose consequent to the order of the appellate authorities the said amount of interest is payable to the assessee. The assessee is also entitled to interest under s. 243 as there was a delay in refund of the amount by delaying the order giving effect to the appellate authorities. He submitted a number of authorities on the issue that his claim is justified and is a rectifiable mistake. On the other hand, Mr. Ruhela for the department filed a cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not an order giving effect to the order passed by the AAC. He had also submitted by placing reliance on the Tribunal's order filed by him, for the proposition that rectification proceedings are not to be resorted to in a matter where there are divergent views. Sec. 214 reads as under: "214. (1) The Central Government shall pay simple interest at fifteen per cent of advance tax paid during any financial year in which they are payable under sections 207 to 213 exceeds the amount of the (tax determined or regular assessment) from the 1st April, next following the said financial year to the date of the regular assessment for the assessment year immediately following the said financial year, and where any such instalment is paid after the expir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question was considered by their Lordships of the Delhi High Court in the case of National Agricultural Co-operative Marketing Federation of India Ltd. Their Lordships were of the view that a regular assessment would not only include the original regular assessment as is normally or popularly understood, but it would also include the revised regular assessment where on a re-computation in pursuance of a direction of a superior authority a reduction of tax has been ordered. According to their Lordships, the provisions that are contained in s. 214(1)(1A) and (2) are incorporated to safeguard the interest of the Central Government by reducing its liabilities in the circumstances mentioned therein. According to their Lordships, the legislature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has to be increased consequent to appellate order, then such additional interest is payable by the Government to the assessee. 3. In respect of interest under s. 244(1A) according to their Lordships of the Delhi High Court once all taxes paid including advance tax were adjusted consequent to the assessment made then the separate character such as advance tax or wealth assessment tax no longer exist but they are to be treated as tax paid as consequent to an order of assessment. Therefore, the assessee would be due the interest under s. 244(1A) as well. Their Lordships have observed, thus, in their order: "If we review the position regarding the interpretation of s. 214 in the light of this provision, one of two results will have to follow. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid earlier will get converted into a payment on the date of the initial assessment of the tax due for the assessment year. Carrying this fiction to its logical extent the assessee must be held entitled to interest of the amount of the advance tax also to the extent it is found refundable from the date of the excess payment right upto the date of actual refund. In either view of the matter, an assessee placed in the circumstances in which he is placed in the present case, would be entitled to claim interest on the excess advance tax paid by him from the date of payment up to the date of refund. In the present case, though the advance tax was originally paid during the financial year 1972-73 the initial assessment was made in 1976, and for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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