COMMISSIONER OF INCOME TAX Vs. ASHOK LEYLAND LIMITED

JUDGEMENT

(1.) THE Commissioner of Income-tax has filed this petition for a direction to the Income-tax Appellate Tribunal, Madras Bench, to state a case and refer the following question of law :

(2.) THE order of assessment made in the assessee's case under the Surtax Act for the assessment year 1979-80 was the subject-matter of further proceeding under Section 14 of the Companies (Profits) Surtax Act, 1964 (hereinafter referred to as "the Surtax Act"), consequent to the revision of the assessee's related income-tax assessment. THE said order passed under Section 14 of the Act had resulted in a refund to the assessee of a sum of Rs. 3,72,981. THE assessee, no doubt, was granted the refund, but the Assessing Officer rejected the claim of the assessee for interest under Section 244(1A) of the Income-tax Act read with Section 18 of the Act holding that the entire amount, a part of which has become refundable, has been paid by the assessee as per the order of a provisional assessment and, therefore, the assessee was not entitled to interest under Section 244(1A) of the Income-tax Act, 1961. THE assessee preferred an appeal before the Commissioner of Income-tax (Appeals) (sic) holding that the assessee was entitled to interest under Section 244(1A) of the Income-tax Act. THE Income-tax Appellate Tribunal rejected the reference application filed by the Revenue on the ground that no referable question of law arose from its order. Consequently, this petition has been filed.