COMMISSIONER OF INCOME TAX Vs. P.K. INDUSTRIES

JUDGEMENT

(1.) 55/Asr/1983 for the opinion of this Court on the following questions of law which have arisen out of order passed in ITA No. 747/Asr/1981 and C.O. No. 85/Asr/1981 for the asst. yr. 1977 -78 :

(2.) THE assessee had made payment of advance income -tax under s. 210 of the IT Act (hereinafter referred to as the "Act") when the assessment was made. Further after the return had been filed, a further amount of Rs. 47,856 was required to be paid by way of tax. Out of this sum, Rs. 15,000 was paid. The assessee having felt aggrieved, appealed against the assessment made, whereby the ITO had made a considerable addition. As a result of the appellate order, assessment made by the ITO was slashed and the total income was reduced to the extent that the assessee became entitled to claim a refund of a part of the advance tax paid by him under s. 210 of the Act. The assessee made a claim that the interest on the excess amount of advance tax paid by him be allowed to him. The ITO turned down his claim both under s. 214 as well as under s. 244(1A) of the Act.

(3.) THE assessee felt aggrieved against the said order, filed an appeal before the CIT(A), Jalandhar. The CIT(A), of the regular assessment order made upto the date of payment of refund under s. 244(1A) and directed the ITO to revise the assessment. However, the plea of the assessee for allowing interest under s. 214 was declined.