COMMISSIONER OF INCOME-TAX Vs. SUNIL KUMAR

JUDGEMENT

(1.) The Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated December 9, 1985, in respect of the assessment year 1978-79 under Section 256(1) of the Income-tax Act, 1961 :

(2.) The brief facts of the case are that the assessee is a partner in the firm of Messrs. Vasant Trading Co. The assessment under Section 143(3) of the Income-tax Act Was completed on an income of Rs. 82,940 on which a tax of Rs. 31,290 was determined, vide order dated November 13, 1979. After giving credit for tax deducted at source, advance tax payments and self-assessment tax, a balance of Rs. 7,711 was determined as payable. The assessee moved an application under Section 154 on the basis of which the Income-tax Officer carried out the rectification, vide his order dated January 10, 1980. Giving effect to the appellate order the income was determined at Rs. 74,010 on the basis of which the tax payable came to Rs. 758, which was paid on February 12, 1981. The second appeal was filed before the Income-tax Appellate Tribunal and the income was further reduced to Rs. 66,180 on the basis of which the assessee became entitled to refund of Rs. 4,731. The assessee submitted an application under Section 154 claiming interest under Section 214 at Rs. 190, under Section 244(1A) at Rs. 1,598 and under Section 243 at Rs. 130. This application was rejected by the Income-tax Officer on January 15, 1984, but an appeal was preferred before the Appellate Assistant Commissioner. The interest claimed under Section 243 was allowed and the claim of interest under Sections 214 and 244(1A) was rejected. In the second appeal preferred by the assessee before the Income-tax Appellate Tribunal it was held that the assessee is entitled to interest under Sections 214 and 244(1A) even in the rectification proceedings.

(3.) Before us, the submission of learned counsel for the Revenue is that in the proceedings under Section 154 the interest was not payable.