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Section 214 of the Income-tax Act, 1961 - Advance tax - Interest payable to assessee - Whether tax deducted at source is at par with advance tax paid, for purpose of allowing interest on excess tax deducted at source as envisaged by section 214 in case of refund of excess advance tax paid - Held, no - Whether section 214 can be said to be discriminatory or arbitrary since it directs payment of interest on excess advance tax received by Government but does not envisage such payment of interest on excess tax deducted at source - Held, no Facts The assessee was a bank. For the assessment years 1975-76 to 1979-80, income-tax was deducted at source under sections 193, 194 and 194A on the interest due to the assessee on securities held by it and on dividends payable to the assessee on shares and the amount, realized was paid to the Central Government by the persons authorised to deduct the tax at source. During all such previous years, the tax deducted at source exceeded the tax finally determined. The ITO in directing refund of the excess amount collected, did not provide for the payment of interest to the assessee. The assessee presented petition under section 154, praying for amendment of the assessment by providing for payment of interest on the amounts refunded from the commencement of each assessment year till the date of regular assessment. The ITO rejected the assessee's petition on the ground that the tax deducted at source could not be considered as advance tax paid as envisaged by sections 207 to 213, that such payment did not fall within the purview of section 214 and that there was no mistake apparent on the face of the record. The assessee's appeals against the ITO's order were also dismissed. On writ, the assessee prayed for payment of interest on the difference between the aggregate of the income-tax deducted at source and paid to the credit of the Central Government and the tax determined on regular assessment, and also challenged the constitutional validity of section 214 as being discriminatory and violative of article 14. Held The only characteristic common to advance tax and tax deducted at source is that they are paid or collected prior to the…

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