COMMISSIONER OF INCOME TAX Vs. HINDUSTAN ENGINEERING COMPANY

JUDGEMENT

(1.) THESE references have been made under Section 256(1) of the Income-tax Act, 1961 (hereinafter to be called "the Act"), at the instance of the Commissioner of Income-tax, Jodhpur, for deciding the following question of law, namely :

(2.) IT has been contended by learned standing counsel for the Revenue that the provisions of Section 214 of the Act are attracted for the advance tax only and not for the tax deducted at source, there is no provision in the Act permitting payment of interest on the amount refundable from the amount of tax deducted, at source and there is no place for equity in matters of tax. He relied upon Addl CIT v. Bareilly Corporation Bank Ltd. [1978] 115 ITR 449 (All) and Lord Krishna Bank Ltd. v. ITO [1989] 176 ITR 508 (Ker).

(3.) IN the result, the question referred to us is answered in the negative, in favour of the Revenue and against the assessee.