COMMISSIONER OF INCOME TAX Vs. HINDUSTAN RADIATORS

JUDGEMENT

(1.) THE Tribunal, Jaipur Bench, Jaipur, has referred the following question of law under S. 256(1) of the IT Act, 1961, for the opinion of the High Court :

(2.) THE assessee M/s Hindustan Radiators, Jodhpur, was assessed under S. 143(3)/144B of the IT Act, for the asst. yr. 1980-81 by the ITO, Central Circle, Jodhpur, for the total income of Rs. 10,78,180. The assessment was completed on 8th Sept., 1983. The assessee paid advance tax amounting to Rs. 2,13,600. The assessee challenging the assessment, preferred an appeal before the CIT(A), Jodhpur, which was allowed in part and the income assessed was reduced to Rs. 5,75,589. Due to the reduction of the assessed income, the assessee was allowed refund of excess of advance tax paid by him. The ITO, however, did not allow interest under S. 214 on the excess advance tax paid by the assessee. The assessee filed application under S. 154 of the IT Act before the Assessing Officer claiming interest under S. 214/244(1A) on the excess advance tax paid by him, but this application was dismissed by the ITO. Aggrieved with the order disallowing interest on the advance tax, which was ordered to be refunded, the assessee filed an appeal. The appeal was allowed and the ITO was directed to pay interest upto the date of refund. The Revenue, aggrieved with the decision of the CIT(A), Jodhpur, preferred an appeal before the Tribunal, Jaipur Bench, Jaipur, and the Tribunal dismissed the appeal of the Revenue and upheld the order passed by the CIT(A), Jodhpur. The Revenue, thereafter, preferred an application under S. 256(1) of the Act before the Tribunal, to refer the questions of law mentioned in the application for the opinion of the High Court and the Tribunal referred the question of law mentioned in para No. 1 above.

(3.) WE have considered the submissions made by the learned counsel for the Revenue.