COMMISSIONER OF INCOME TAX Vs. S.D.MATKAR.

JUDGEMENT

(1.) THIS is an IT reference under s. 256(1) of the IT Act. The following question of law has been referred by the Tribunal for answer by this Court

(2.) THE year of assessment involved is 1981 -82. The assessee furnished the return of income at Rs. 41,430 on which tax payable was Rs. 10,199. The assessee paid advance tax of Rs. 12,025. The assessment was framed under s. 143(1) on 20th February, 1982 at the returned income of Rs. 41,430 but at the same time, the income of Rs. 10,200 was taken as from agriculture. This was objected to by the assessee in Form No. 6A dt. 6th June, 1982. However, the AO did not pass any order thereon and as such, there was no valid assessment order in existence. The assessee, therefore, claimed refund of entire advance tax with interest thereon. The ITO sent letter dt. 21st April, 1986 to the assessee which mentioned as under :

(3.) THE Tribunal in its order dt. 25th June, 1982 held that it was obvious that in case the assessee had filed objection in Form No. 6A within 30 days of the service of the notice of demand issued in compliance with the assessment order dt. 20th February, 1982, there was no valid assessment order which could be rectified under s. 155 of the Act and on the basis of which the assessee could be made to pay tax. Further it was held that if Form No. 6A was filed by the assessee within 30 days of the service of notice of demand, the ITO shall refund Rs. 10,256 and interest on Rs. 12,025 from 1st April, 1982 to 30th September, 1984 at the rate of 12 per cent per annum and interest on Rs. 12,025 from 1st October, 1984 to 20th April, 1986 at the rate of 15 per cent and interest on Rs. 10,256 from 21st April, 1986 till the date of refund at the rate of 15 per cent.