SHOLINGUR TEXTILES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Tribunal under Section 256(1) of the Income-tax Act, 1961, hereinafter referred to as the "Act", has referred the following question of law, for our consideration : "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the issue relating to the grant of interest under Section 214 cannot be entertained even though an appeal was filed contesting various additions apart from the denial of interest under Section 214 of the Income-Lax Act ?"

(2.) THE assessee is a company. THE assessce, in the course of assessment proceedings for assessment year 1980-81 claimed interest before the Income-tax Officer under Section 214 of the Act. THE Income-tax Officer did not grant the interest on the ground that a sum of Rs. 25.8 lakhs paid by the assessee was not an advance tax, but an ad hoc payment and, hence, he did not allow any interest under Section 214 of the Act, even though there was a refund of a sum of Rs. 4,90,994. THEre were certain other disallowances and additions in the order of assessment.

(3.) MR. C. V. Rajan, learned counsel for the Revenue, has submitted that he did not seriously dispute the position of law submitted by learned counsel for the assessee.