EMPIRE INDUSTRIES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference at the instance of the assessee. It relates to the asst. year 1973 74. By its order under S. 256(1) of the IT Act, 1961, the Tribunal has referred the following question of law for the opinion of this Court :

(2.) THE assessee had, it is common ground, paid advance tax of Rs. 24,47,850. On regular assessment completed under S. 143(3), the ITO raised a demand under S. 156 of the Act of Rs. 7,27,401 inclusive of interest of Rs. 56,161. By an order dt. 27th June, 1974 the AAC allowed the appeal partly. While giving effect to the appellate order on 29th Aug., 1974, the ITO determined the amount refundable to the assessee at Rs. 9,46,137. The amount was refunded but interest thereon under S. 214 of the Act was not paid.

(3.) THE assessee went in further appeal to the Tribunal. By the impugned order dt. 23rd Jan., 1976, the Tribunal held that an appeal merely against an order under S. 18A of the Indian IT Act, 1922, corresponding to S. 215 of the Act, would not lie but in appeal against an order of assessment, it would be open to the assessee to challenge the ITO's order under S. 18A of the Act as well. It also held that demanding interest from the ITO under S. 214 of the Act could not be treated as a case of the assessee denying its liability to be assessed under the Act. The Tribunal, thus, held that the appeal filed by the assessee merely against non payment of interest under S. 214 was not competent. In that view of the matter, the Tribunal did not go into the merits of the question whether the assessee was or was not entitled to interest under S. 214 of the Act.