TMI Blog2008 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... nt by the Income-tax Appellate Tribunal, Amritsar vide order dated 23.9.1983 passed in RA No.55/ASR/1983 for the opinion of this Court on the following questions of law which have arisen out of order passed in ITA No.747/ASR/1981 and Cross-objections No.85/ASR/1981 for the assessment year 1977-78 :- "(i) Whether on the facts and in the circumstances of the case, the ITAT is correct in returning a finding that the issue raised is not debatable? (ii) Whether on the facts and in the circumstances of the case, the Appellate Tribunal is correct in upholding the finding of CIT(A) that the assessee is entitled to interest u/s 244 (1A) of the Income Tax Act? (iii) Whether on the facts and in the circumstances of the case, the Appellate Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowing interest under Section 214 was declined. 4. Not satisfied with the order of the CIT(A), Jalandhar, the assessee further filed an appeal before the Tribunal. The revenue also filed cross-objections before the Tribunal. The assessee was in appeal against the findings of the CIT(A), Jalandhar in respect of his claim for interest from the date of payment of the advance upto the date of assessment, whereas the case of the revenue in the cross-objections was against the admission of the claim of the assessee for interest from the date of assessment upto the date of refund made. The Tribunal vide its order dated 24.3.1983 accepted the appeal filed by the assessee and the cross-objections filed by the revenue were dismissed. 5. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellate or other authority specified in Section 240. The expression "amount" in the earlier part of Section 244(1A) refers not only to the tax but also to the interest ; it is a neutral expression and it cannot be limited to the tax paid in pursuance of the order of assessment. Even assuming that there is no provision for payment of compensation, compensation for delay is required to be paid as the Act itself recognizes in principle the liability of the Department to pay interest when excess tax was retained and the same principle should be extended to cases where interest was retained." 7. The said judgement has also been followed by the Bombay High Court in the case of Godrej and Boyce Manufacturing Co. Ltd. v. P.K. Gupta, Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Officer as payment of tax in discharge of the assessee's tax liability in the assessment order), becomes refundable wholly or in part as a result of any appellate or other order passed, the Central Government will have to pay the assessee interest on the refundable amount under Section 244 (1A). For the purpose of this section, the amount of advance payment of tax and the amount of tax deducted at source must be treated as payment of income-tax pursuant to an order of assessment on and from the date when these amounts were set off against the tax demand raised in the assessment order, in other words, the date of the assessment order. (iii) With effect from April 1, 1985, interest payable under Section 214 will increase or d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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