RAJNIKANT NARMADASHANKAR Vs. MUNSHI C L

JUDGEMENT

(1.) THE petitioner is seeking a writ of mandamus for a direction to respondent No. 1 to implement the order dated September 17, 1975, passed by the CIT, Bombay, and to award appropriate interest to the petitioner under S. 214 of the IT Act, 1961 (hereinafter referred to as "the Act").

(2.) ONLY few facts are required to be stated to appreciate the grievance of the petitioner. The petitioner was liable for payment of advance tax for the first time in the asst. year 1972 73. Accordingly, the petitioner filed the estimate of income on December 15, 1971, and the estimated amount was Rs. 70,560. The tax due on this amount was Rs. 34,650, and the same was paid by the petitioner on December 23, 1971. The Addl. 4th ITO, B III Ward, Bombay, completed the assessment and passed the assessment order on February 11, 1975, and the total income of the petitioner was assessed at Rs. 46,000. The tax due on that amount was Rs. 16,790, and, therefore, the ITO directed that the balance amount of tax paid on December 21, 1971, should be refunded.

(3.) FROM the facts set out herein above, it is clear that the ITO has failed to discharge his duty and grant appropriate amount of interest under S. 214 of the Act in compliance with the order passed by the CIT on September 17, 1975. Shri Pradhan, the learned counsel appearing on behalf of the respondents, cannot give any effective answer as to why such an order was not passed. The apprehension of the petitioner is that in view of the instructions issued on October 10, 1975, by the Central Govt., the ITO is not passing the order. It is obvious that the circulars issued by the Government have no force of law, and in any event the circular which came subsequent to the order of the CIT has no application to the facts of the present case. The ITO is bound to pass appropriate orders awarding interest to the petitioner under S. 214 of the Act.