COMMISSIONER OF INCOME-TAX Vs. BABY MARINE EXPORTS

JUDGEMENT

(1.) The Revenue is in appeal before this Court raising questions of law from the order of the Tribunal, which deleted interest charged under Section 234B(3) of the Income Tax Act, 1961 (for short "Act"). On admission, another Division Bench of this Court, had framed substantial questions of law as raised in the memorandum of appeal. We extract them herein :

(2.) We are of the opinion that yet another question of law arises from the facts, which is raised, on consent of both the parties. The question of law as so framed by us is as here under:-

(3.) For the assessment year 1992-93, the assessee filed a return and assessment was completed under Section 143(3) on 30-03-1995 fixing the total income at Rs.55,35,390/-. The assessee paid advance tax of Rs.1,32,032/- and had credit of TDS coming to Rs.3,82,952/-. The advance tax paid hence totaled Rs.5,12,984/-. On 18-09-1995 a refund due of Rs.1,10,615/- was adjusted towards the demand. In appeal from the assessment order under Section 143(3), the Commissioner of Income Tax (Appeals) [CIT hereafter] deleted the additions and remanded the matter, upon which, the order giving effect to the order in appeal worked out the income of the assessee for the year at Rs.11,080/-. There was hence no advance tax payment required and the tax so paid and TDS were liable to be refunded. A re-assessment was proposed under Section 147 and finalised by order dated 20-10-1997, recomputing the total income at Rs.80,55,145/-. There was a payment of Rs.3,97, 252/- on 03-08-1998 and 29-09-1998. In an appeal the CIT recomputed the total income of the assessee at Rs.5,36,410/-. By that time, Rs.8,76,426/- was refunded on 04-03-1996, which included the advance tax & TDS of Rs.5,12,984/- the refund adjusted of Rs.1,10, 615/- and interest of Rs.2,52,828/-. On further orders passed on 10-03-1999, a further refund of Rs.1,72,705/- was made.