TMI Blog2016 (11) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act prior to the introduction of the amended subsection (1A) in Section 214 of the Act.Therefore, the issue raised herein on merits, stands concluded in favour of the applicant assessee by the decision of this Court in Godrej & Boyce Manufacturing Co. Ltd. (2005 (8) TMI 69 - BOMBAY High Court ) wherein held Section 214 deals with payment of interest on the amount of tax found to have been paid in excess of the tax determined as payable on the regular assessment. Interest will have to be paid from the first day of the relevant assessment year to the date of the regular assessment, i.e., the first assessment. - Decided in favour of assessee - Income Tax Reference No. 74 of 1998 - - - Dated:- 15-11-2016 - M. S. Sanklecha And A. K. Meno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2/. The CIT, BombayI, Bombay, revised the order passed by the I.A.C. Dated 17.06.1986 on the ground that he has granted interest under subsection 1A of Section 214, which was applicable only for the assessment year 198586 onwards and the provisions of section 214(1) only were applicable. In the light of the judgment of the Bombay High Court in the case of Carona Sahu Co. Ltd. (146 ITR 452) the order passed by the I.A.C. Dated 17.06.1986 was found to be erroneous and prejudicial to the interest of the revenue. Therefore, after observing the due process of law, the CIT revised the said order and directed withdrawal of interest granted under section 214. 3. The assessee appealed against the revisional order to the Tribunal. The Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4th April, 1986 Order of the Assessing Officer giving effect to the order of the CIT(A) 17th June, 1986 Order of the Commissioner of Income Tax (CIT) u/s 263 of the Act 15th March, 1998 Order of the Tribunal 22nd May, 1992 4. Regarding Question (i) : (a) Subsequent to the order of the CIT(A), dated 4th April, 1986, the Assessing Officer passed an order on 17th June, 1986 giving effect to the order of the CIT(A). This resulted in total income being revised to ₹ 36.32 lakhs from the earlier income determined at ₹ 60.02 lakhs on 25th October, 1985 under Section 143(3) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (1A) thereof can not be given effect to for the period prior to 1st April, 1985. (d) The question as formulated for our consideration is no longer res integra as this Court in Godrej Boyce Manufacturing Co. Ltd. Vs. P.K. Gupta, Commissioner of Income Tax Ors. 284 ITR 85 had occasion to deal with the scope and effect of amended subsection (1A) to Section 214 of the Act, which came into force w.e.f. 1st April, 1985. This Court in the above case after considering the earlier decision of the full bench of this Court in Carona Sahu Co. Ltd. (supra) held that the Taxation Laws (Amendment) Act, 1984 is procedural in nature and, therefore, would apply to all pending proceedings. In the above case, the Court was concerned with assessment r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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