COMMISSIONER OF INCOME TAX Vs. GRAPHITE INDIA LTD

JUDGEMENT

(1.) In this writ application, the petitioner has challenged the three orders by which its claim for payment of interest under Section 214 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") has been rejected. As a consequential relief, the petitioner has claimed payment of interest under Section 214 of the Act.

(2.) The petitioner's accounting year for the relevant period ended on December 31, 1982. On June 14, 1982, the petitioner submitted an estimate of advance tax for the assessment year 1983-84. The estimated tax was paid in three instalments, i.e., June 14, 1982, September 13, 1982 and December 15, 1982. On March 15, 1983, the petitioner submitted a revised estimate and paid a further sum of Rs. 30,00.000 by way of advance tax for the assessment year 1983-84. The returned income of that year was Rs. 30,88,760.

(3.) By an order dated February 28, 1986, the Assessing Officer completed the assessment for the assessment year 1983-84 under Section 143(3) of the Act. The assessed income was Rs. 57,16,460. The Assessing Officer computed the tax and surcharge payable by the petitioner in respect of such income after giving credit for the entire amount paid by the petitioner by way of advance tax including the said sum of Rs. 30 lakhs. The petitioner preferred an appeal from the order dated February 28, 1986. By an order dated November 24, 1988, the appeal was partially allowed by the Commissioner of Income-tax (Appeals).