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Tata Press Ltd. Versus Commissioner of Income Tax

2016 (11) TMI 804 - BOMBAY HIGH COURT

Grant of interest on refund - Whether, the amendment made by insertion of subsection (1A) in Section 214 by Direct Tax Laws (Amendment) Act, 1984 providing for grant of interest is clarificatory and in any event applicable to the facts of the present case? - Held that:- In the present facts, all orders including the order passed in the regular assessment proceedings by the Assessing Officer were passed after the amended subsection 1A of Section 214 of the Act came into force w.e.f. 1st April, 19 .....

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terest 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. Menon, JJ. Mr. Nishant Thakkar a/w Mr. Rajesh Poojary a/w Ms. Jasmin Amalsadvala i/b Mulla & Mulla for the .....

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Whether on the facts and in the circumstances of the case, the Tribunal was justified in upholding the order passed by the Commissioner of Income Tax under section 263? 2. The Statement of Case made by the Tribunal as rectified by its order dated 23rd September, 2016 reads as under : 2. The relevant facts of the case are that the assessee is a company carrying on business of printing. The assessment year involved is 1984-85 for which the accounting year ended on 31st March, 1984. The assessment .....

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tion 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 .....

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upheld the revisional order of the CIT for grant of interest u/s 214 as against the judgment of the Bombay High Court reported in 146 ITR 452 (Carona Sahu Co. Ltd. Vs. CIT). In other words, the Tribunal found that no refund was due to the assessee in the original assessment and the order passed by the I.A.C. On 17.06.1986 was not a regular assessment in the light of the Bombay High Court reported in 146 ITR 452. The Tribunal also rejected the plea of the assessee that the amendment made by Taxa .....

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der 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 S .....

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to force with effect from 1st April, 1985. Therefore, according to the CIT, subsection (1A) of Section 214 of the Act would be applicable only from Assessment Years 198586 onwards. Consequently, the grant of interest it held would be governed by Section 214(1) of the Act and for that placed reliance upon the decision of this Court in Commissioner of Income Tax Vs. Carona Sahu Co.Ltd., 146 ITR 452. (c) Being aggrieved, the applicant assessee carried the issue of interest receivable in terms of Se .....

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ontains subsection (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 .....

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