Law: Income Tax Act, 1961

Section: 214

Income-tax----Advance tax---Refund of excess paid---Interest---Government liable to pay interest on interest on advance tax wrongfully withheld---Indian Income Tax Act, 1961, S.214(1). Held, that, since the Appellate Tribunal, whose decision the High Court had affirmed, had relied upon the decision of the Gujarat High Court in D.J. Works v. Deputy CIT (1992) 195 ITR 227, to the effect that the Revenue was liable to pay interest on the amount of interest on advance tax which it should have paid to the assessee but has unjustifiably failed to do so, and that decision was followed by the Gujarat High Court in Chimanlal S. Patel v. CIT (1994) 210 ITR 419, and the Department had not challenged the correctness of those two decisions of the Gujarat High Court, the Revenue was bound by the principle laid down therein. D.J. Works v. Deputy CIT (1992) 195 ITR 227 (Guj.) and Chimanlal S. Patel v. CIT (1994) 210 ITR 419 (Guj.) impliedly approved. ORDER The question that the High Court was called upon to answer read thus: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in upholding the order of the Deputy Commissioner of Income-tax (Appeals), Indore, directing to…

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