Law: Income Tax Act, 1961

Section: 214(1),(1A)

Income-Tax---Appellate Tribunal---Scope of powers--Duty of Tribunal to consider law as it existed though assessee failed to bring it to notice of Tribunal--¬Assessee becoming entitled to interest under S.214(1-A)---Tribunal holding that interest payable only up to date of first assessment ---Assessee filing application before Tribunal and contending that mistake was committed by it in not specifically referring to subsection (I-A) of S.214 when claiming interest---Tribunal rejecting application on ground that no reference made to S.214(1-A), in course of hearing Revenue's appeal---Provision existed in statute book when question came up for decision before Tribunal---Tribunal bound to consider all provisions of 5.214 including subsection (1-A)---Indian Income Tax Act, 1961, S.214(1), (1-A). The original assessment for the assessment year 1983-84 was completed on March 27, 1986, fixing the total income of Rs.19,94,620 and demanding a total sum of Rs.11,18,460 towards income-tax, interest, etc. On appeal, the Commissioner of Income-tax (Appeals) granted certain relief's and consequently the advance tax paid by the assessee was found to be in excess of the tax demand which resulted in a refund. Consequently, the amount on which interest was payable under subsection (1) of section 214 increased and the assessee became entitled to interest in terms of section 214(1¬ A) of the Act. However, the Assessing Officer did not allow any interest under section 214(1-A). On appeal, the Commissioner of Income-tax (Appeals) directed the Assessing Officer to grant interest under section 214. On appeal by the Revenue to the Tribunal it held that the interest under section 214 is payable only up to the date of first assessment under section 143 or under section 144, on the amount found to be in excess of the tax demand. The assessee filed a miscellaneous application before the tribunal and contended that it had committed a mistake in not referring to the provisions of subsection (1-A) of section 214. The Tribunal rejected the said petition holding that no reference was made to section 214(1-A) in the course of hearing of the Revenue's appeal. However, in view of the submission of…

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