Law:

Section:

Section 256 of the Income-tax Act, 1961 - Reference - Question of law - On assessment made, assessee became entitled to a refund out of advance tax paid as a result of appellate and rectificatory orders passed after regular assessment - Tribunal allowed interest under section 214 on that refunded amount - A different Bench of Tribunal had taken a similar view and High Court under whose jurisdiction that Tribunal fell refused to get that question referred and further special leave petition against High Court's order was dismissed by Supreme Court without passing a speaking order - Whether Tribunal was justified in not referring that question of law, even though present High Court had taken a contrary view in a decided case - Held, no FACTS On the assessment made for the relevant assessment year 1975-76, the assessee-company became entitled to a refund out of the advance tax paid, but the ITO did not allow interest on the amount refunded on the plea that the advance tax amount was not paid within the stipulated period and that the refunds were not granted as a result of regular assessment. On appeal, the Commissioner (Appeals) allowed interest to the assessee under section 214 on the total amount of refunds allowed to it as a result of appellate and rectificatory orders passed after regular assessment. On further appeal, the Tribunal upheld the order of the Commissioner (Appeals). It also rejected the revenue's application under section 256(1). On an application for reference under section 256(2), the assessee contended that the Bombay Income-tax Tribunal had taken a similar view to the one taken by the Tribunal in the present case and the Bombay High Court refused to issue a mandamus to get the question referred and special leave petition against the order of the High Court was dismissed by the Supreme Court without passing a speaking order, which necessarily would mean that the view of the Bombay Tribunal was affirmed. HELD It has been recently held in CIT v. Sheo Kumari Debi [1986] 157 ITR 13 (Pat.) (FB) and in CIT v.Indradaman Amratlal [1985] 156 ITR 493 (Guj.) that a refusal to grant leave to file appeal by the Supreme Court does not ipso facto mean that the…

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