Law:

Section:

Section 214, read with section 2(40) of the Income-tax Act, 1961 - Advance tax - Interest payable by Government - Assessment year 1982-83 - Whether 'regular assessment' under section 214 includes an assessment made by ITO under section 143 in pursuance to direction of appellate authority and, therefore, assessee is entitled to interest under section 214 on amount of refund which becomes payable in view of appellate order - Held, yes FACTS For the assessment year 1982-83, the assessee claimed that under section 214 read with section 2(40), thereof the words 'regular assessment' include an assessment which is made to give effect to the appellate order and as such it was entitled to interest on the balance refund, which became refundable in view of the order passed by the Commissioner (Appeals). The ITO refused to pay the interest under section 214 as claimed by the assessee. On writ: HELD In the case of Chloride India Ltd. v. CIT [1977] 106 ITR 38 (Cal.), it was held that the obligation under section 214 is to pay interest on the amount by which the advance tax paid exceeds the tax determined on regular assessment. An order which is made by the ITO to give effect to the order of the AAC is an order of assessment under section 143. If this is the position, then in view of section 2(40) the regular assessment as contemplated by section 214(1) should be the assessment made by the ITO initially or the first assessment made by the ITO if there is no appeal, and also the order passed by the ITO finally to give effect to the direction, if any, of the appellate authority. Having regard to the scheme of the Act and the context in which the expression has been used, 'regular assessment' Under section 214 would include in the particular facts and circumstances of the case an assessment made by the ITO pursuant to the direction of the AAC. Following the aforesaid decision in the instant case the assessee was entitled to interest on the amount of re fund which became payable in view of the order passed by the Commissioner (Appeals). CASE REVIEW Chloride India Ltd. v. CIT [1977] 106 ITR 38 (Cal.) followed and relied upon. CASES REFERRED TO Chloride India Ltd. v. CIT [1977] 106…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492