9911796707
TMI Blog2002 (8) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 244(1A) Of the Income-tax Act, 1961?" The assessee-Hindu undivided family was allowed refund of Rs. 54,364 as per order under section 154 of the Income-tax Act, 1961, dated October 15, 1990, on account of interest under section 244(1A) of the Act, in respect of the assessment years 1958-59 and 1959-60. However, a demand for Rs. 28,163 was created against the assessee-Hindu undivided family vide ITNS-150, dated January 22, 1990, and the refund was adjusted against such demand and such order of adjustment was passed prior to April 1, 1975. By a subsequent order dated May 21, 1991, the Income-tax Officer withdrew the interest allowed by him under section 244(1A) of the Act and in appeal his action was upheld by the learned Deput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to be rectified, because the question whether the orders passed by the Income-tax Officer to give effect to the appellate orders were 'regular assessments' was of great difficulty and complexity and one of doubt and debate. This view of the Delhi High Court was affirmed by the Supreme Court by dismissing the special leave petition of the Department. The contention of learned counsel for the assessee, therefore, gets good support from the decision of the High Court. I, therefore, hold that the Income-tax Officer erred in law in withdrawing the interest allowed to the assessee under section 244(1A) of the Act vide his order dated October 15, 1990. His subsequent order dated May 21, 1991, withdrawing the interest under section 244(1A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted: Provided that where the amount so found to be in excess was paid in instalments, such interest shall be payable on the amount of each such instalment or any part of such instalment, which was in excess, from the date on which such instalment was paid to the date on which the refund is granted: Provided further that no interest un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an assessee after March 31, 1975, he would be entitled to interest in respect of such payments to the extent they are refunded on being found to be in excess of the amount of tax ultimately found due as a result of an appeal, revision, reference or rectification. Such interest is payable from the date of the payment of the excess amounts right up to the date of refund." The assessee is entitled for interest under section 244(1A) from the date of excess payment to the date of refund. In CIT v. Dalmia Cement (Bharat) Ltd. [1982] 137 ITR 681, the issue before the Delhi High Court was when the interest under section 214 was allowed, can it be withdrawn in an order under section 154 of the Act. The Delhi High Court has considered this aspect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 decrease in accordance with the variation in the quantum of the excess payment of tax brought about by orders passed subsequent to the regular assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 244(1A) of the Act, on the excess amount of the tax paid much before April 1, 1975. The assessee is not entitled for interest under section 244(1A) of the Act. The interest is payable only on the tax excess paid on or after March 31, 1975, the assessee cannot get the benefit of section 244(1A) of the Act. In the cases referred to above, the assessment was made after April 1, 1975. The case in hand the assessment had been made much before the date referred to in section 244(1A) of the Act of 1961, the Tribunal has wrongly relied upon the decision of the Punjab and Haryana High Court, in the case of CIT v. Hansa Agencies P. Ltd. [1998] 234 ITR 271. In that case the relevant assessment year was 1976-77. When the interest has wrongly been ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
