Law: Income Tax Act, 1961

Section: 214

Income-tax----Advance tax---Interest payable by Government on excess payment of advance tax---Inclusions in total income---Minor----Income of minor child from firm in which individual is partners includible in individuals total income w.e.f. 1-4-1976---Minor submitting returns in respect of his income from firm and also paying advance tax after 1-4-1976---Protective assessment made on minor---Subsequent cancellation of protective assessment and inclusion of minors income in that of his father---Interest levied on minors father because with such inclusion there was a -short fall in his payment of advance tax---Waiver of interest--Minor entitled to interest under S.214 but interest not awarded on grounds of equity---Indian Income Tax Act, 1961, S.214. The petitioner was a minor at the relevant time and was being assessed to income-tax for his share in a partnership firm. His father was also a partner in the said firm. By section 13 of the Taxation Laws (Amendment) Act, 1975, made effective from April 1, 1976, provisions of section 64(3) were inserted in the Income Tax Act, 1961. The said provision provided that if a minor is admitted to; the benefits of partnership, income falling to his share will be liable to be assessed in the hands of either parent, whoever has the higher income. Though not obliged after the amendment of section 64(3) of the Act, the petitioner filed his return of income and showed his share of income from the firm. An order of protective assessment was made on the minor. Subsequently, however, the said protective assessment was cancelled and the income of the petitioner was added to the income of his father and he was assessed accordingly. In the meantime, however, the petitioner had deposited the advance tax under the provisions of section 210 read with section 211 of the become Tax Act, 1961. On a writ petition claiming refund of advance tax as also interest under section 214: Held, that section 214 speaks of the period for which the amount is refundable and for the said purpose word "regular assessment" is incorporated. In the said provision it is nowhere provided that the interest will not be payable unless the regular assessment has…

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