TMI Blog1987 (4) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... the following question : " Whether, on the facts and in the circumstances of the case, interest is payable by the Government under section 214 of the Income-tax Act, 1961, up to the date of the original assessment or to the date of the rectification order ? " The only facts that need to be stated are that the assessee had paid advance tax in the sum of Rs. 10,22,096,35. When the Income-tax Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Interest under section 214 is, therefore, to be paid up to the date of regular assessment. Regular assessment has been defined in section 2(40) as assessment made under section 143 or section 144. It has been explained in Board's Instruction No. 921 dated February 12, 1946 (F. No, 404/8175-ITCC), that it is the first assessment that will be treated as the regular assessment and later assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses of determining the tax payable on regular assessment. This is only reasonable. It is, therefore, felt that interest under section 214 can be altered with reference to the tax payable as per the rectified order under section 154. " Mr. Dalvi submitted that by reason of this instruction issued by the Central Board of Direct Taxes, the assessee was entitled to interest on the amount refundable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation. Perusal of paragraph 3 of the instruction of the Central Board of Direct Taxes shows that the Central Board of Direct Taxes had taken the terminus for calculating interest under section 214 of the Income-tax Act, 1961, into account. It is stated that the terminus could not be altered merely because the income assessed had undergone a change as a result of appeal or revision. It did not ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest up to the date of the order of rectification. It is within the powers of the Central Board of Direct Taxes to issue instructions of this nature giving relief to the assessee regardless of the fact that the legal position has been held to be different. In the circumstances, the question is answered thus Interest is payable under section 214 of the Income-tax Act, 1961, up to the date of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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