COMMISSIONER OF INCOME TAX Vs. PARMANAND BHAI PATEL

JUDGEMENT

(1.) THIS is a reference made by the Tribunal referring for our answer the following questions of law :

(2.) THE reference relates to the asst. yr. 1969-70. THE assessee paid advance tax in accordance with s. 211 of the IT Act, 1961, on different dates as mentioned in paragraph 2 of the statement of case. THE last two instalments were respectively paid on 3rd March, 1969, and 23rd March, 1969. THE due date for payment of last instalment under s. 211, as then in force, was 1st March, 1969. THE assessment order by the ITO was passed on 2nd March, 1972. THE assessee was allowed interest amounting to Rs. 23,462 under s. 214. THEreafter, proceedings for reassessment were taken on the ground that income in respect of self-occupied property had escaped assessment. THE reassessment order was passed on 1st February, 1975. THE ITO then rectified the assessment under s. 154, by his order dated 29th November, 1976, by deleting the interest allowed under s. 214. THE assessee contended before the AAC that the rectification order was passed beyond limitation, as it was passed beyond four years from 2nd March, 1972, when the initial order of assessment was passed by the ITO. It was also contended that there was no apparent mistake on the record, Both these contentions were negatived by the AAC. In further appeal, the Tribunal accepted both these contentions of the assessee. THE Tribunal further held that on merits also the assessee was entitled to interest under s. 214.