COMMISSIONER OF INCOME TAX Vs. TATA CHEMICALS LIMITED

JUDGEMENT

(1.) THIS is a reference made under S. 256(1) of the IT Act, 1961, raising, at the instance of the Revenue, the following question:

(2.) THE only facts that need to be stated are that the assessee had paid advance tax in the sum of Rs. 10,22,096.35. When the ITO made the order of regular assessment on 25th Jan., 1968, he did not take this payment into account. He made an order of rectification on 23rd July, 1968, by reason of which the said amount of Rs. 10,22,096.35 became refundable to the assessee. The question relates to this refund.

(3.) MR . Dalvi submitted that by reason of this instruction issued by the CBDT, the assessee was entitled to interest on the amount refundable by virtue of the rectification order from the date of payment of the advance tax up to 23rd July, 1968, when the order of rectification was made. Mr. Jetly did not dispute that under the instruction, the assessee is entitled to interest upon the amount refundable by virtue of the order of rectification, but he submitted that the assessee was entitled to interest only up to 25th Jan., 1968, being the date of regular assessment. He relied in this context upon the Full Bench judgments of this Court in CIT vs. Carona Sahu Co. Ltd. (1984) 38 CTR (Bom) 219 (FB) : (1984) 146 ITR 452 (Bom)(FB) : TC4R.424 and CIT vs. India Re insurance Corporation Ltd. (1984) 146 ITR 477 (Bom) (FB) : TC4R.444.