COMMISSIONER OF INCOME TAX Vs. RAM BHAJAN LAL

JUDGEMENT

(1.) THE Tribunal referred the following question for the opinion of this Court under S. 256(1) of the IT Act, 1961 (briefly 'the Act')

(2.) ADMITTEDLY the assessee had paid last instalment of advance tax after 15th Dec., 1972, but during the financial year, relevant to the asst. yr. 1973-74. The amount of instalment paid was found in excess on a regular assessment. The ITO allowed interest to the assessee on the excess amount. But later on taking the view that the instalment had been paid beyond due date, no interest was payable, the assessee was called upon by the respondent to refund the amount of interest pursuant to an order passed under S. 154 of the Act. The appellate authority allowed the appeal of the assessee. On further appeal, the Tribunal upheld the order of the appellate authority.

(3.) FROM these decisions, it is clear that conflicting views are available on the above question and, therefore, the question is debatable and beyond the purview of S. 154 as held by the Tribunal. For the reasons, the aforementioned question is answered in the affirmative i.e., in favour of the assessee and against the Revenue.