JAGDISH PRASAD AGGARWAL Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE petitioner herein is a HUF carrying on the business of export of readymade garments at New Delhi. For the assessment year 1974 -75, the petitioner made following payments towards the advance tax: (a) 12 -9 -1973 Rs. 5,728(b) 11 -12 -1973 Rs. 5,728(c) 15 -3 -1974 Rs. 55,106

(2.) LAST payment was credited in RBI on 25 -3 -1974. In this manner, total advance tax paid was Rs. 66,562. The return for that assessment year was filed on 30 -7 -1974. As per this, he declared the income of Rs. 31,814. However, the Income -tax Officer assessed the income of Rs. 1,57,350 and raised a demand of Rs. 1,23,310 vide assessment order dated 2 -7 -1977. The petitioner went in appeal against the said order and the matter was taken up to the Income -tax Appellate Tribunal, which passed the order in favour of the petitioner in June, 1981. As per the order of the Tribunal income was assessed at Rs. 39,905 of which tax payable was Rs. 16,038. Since the petitioner had paid advance tax of Rs. 66,562, a sum of Rs. 50,524 becomes refundable to the petitioner, which was in fact refunded to him. However, the petitioner made a claim for interest on this amount under Section 214 of the Income -tax Act, which has been refused by the Commissioner of Income -tax. The reason for refusal given by the CIT is that last payment of advance tax of Rs. 55,106 was credited only on 25 -3 -1974, i.e., after the due date of 15 -3 -1974.

(3.) IN view thereof, we are of the opinion that the petitioner is entitled to interest on the aforesaid amount of Rs. 50,524 under Section 214 of the Income -tax Act. Rule is made absolute. Interest on the aforesaid amount of Rs. 50,524 shall be calculated from 1 -4 -1974 as per the provisions of Section 214 of the Income -tax Act and paid to the petitioner within two months from today.