COMMISSIONER OF WEALTH-TAX Vs. SHASHI AGRAWAL

JUDGEMENT

(1.) IN Wealth -tax Reference No. 237 of 1987 which relates to the assessment years 1970 -71 and 1972 -73 to 1974 -75, the Income -tax Appellate Tribunal, New Delhi, has referred the following question of law under Section 27(1) of the Wealth -tax Act, 1957 (hereinafter referred to as 'the Act'), for the opinion to this court : 'Whether, on the facts and circumstances of the case, the Appellate Tribunal was correct in holding that interest under Section 34A(3A) of the Wealth -tax Act is allowable on refunds paid after March 31, 1975, where the payment made prior to March 31, 1975, under Section 15B of the Wealth -tax Act are adjusted against the wealth -tax demands on the completion of assessments ?'

(2.) WHEREAS in Wealth -tax Reference No. 124 of 1988 which relates to the assessment years 1971 -72, 1975 -76 to 1977 -78, the Income -tax Appellate Tribunal, New Delhi, has referred the following questions of law under Section 27(1) of the Act for the opinion to this court : '1. Whether the Tribunal was correct in holding that the payments made under Section 15B should be deemed to be payment in pursuance of the orders of assessments and will qualify for interest under Section 34A(3A) of the Wealth -tax Act in respect of the assessment years 1971 -72, 1975 -76 to 1977 -78 ? 2. Whether, on the facts and circumstances of the case, the Tribunal was legally correct in holding that interest under Section 34A(3A) was allowable on the payment made prior to March 31, 1975, in respect of the assessment year 1971 -72 ?'

(3.) IN respect of the assessment for the assessment years 1970 -71 to 1974 -75, the respondent assessee had made certain payments under Section 15B of the Act. These payments were made prior to March 31, 1975. The assessments for these four years were completed on March 20, 1979. Against the assessment orders the respondent had preferred appeals and as a result of the appellate orders certain refunds became due to the respondent which are as follows : Assessment year Amount of refund due1970 -71 7,3171972 -73 35,5041973 -74 43,7121974 -75 53,120