COMMISSIONER OF INCOME TAX Vs. PIONEER CONSTRUCTION CO

JUDGEMENT

(1.) THE following two questions of law arising out of an order of the Income-tax Appellate Tribunal passed in connection with the assessment year 1974-75 have been referred to this court for decision under Section 256(1) of the Income-tax Act, 1961 (hereinafter "the Act") :

(2.) WE have heard Shri D. N. Choudhury, for the Department, and Shri A. K. Saraf, for the assessee. From the facts narrated in the statement of the case, it appears that the charging of interest by the Income-tax Officer was a part of the assessment order against which the appeal was preferred.

(3.) IN so far as the case at hand is concerned, the tax assessed by the INcome-tax Officer was Rs. 8,842 whereas a sum of Rs. 16,970 had been deducted at source. IN this view of the matter, nothing had remained to be paid by the assessee in so far as the assessment year in question is concerned. Section 139(8)(a) read with Explanation 2 makes it clear that interest can be levied on the amount of tax determined payable as reduced by any tax paid and any tax deducted at source. IN the present case, as deduction of tax was more than the amount found due, nothing was left on which to calculate interest.