COMMISSIONER OF INCOME TAX Vs. SANGHI M L

JUDGEMENT

(1.) THIS reference under s. 256(1) of the IT Act, 1961, at the instance of the Revenue is to answer the following question of law: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to interest under s. 214 of the IT Act, 1961 ?"

(2.) THE only point involved for decision is, whether the assessee is entitled to interest in accordance with s. 214(1) of the Act on the amount of tax ordered to be refunded as a result of the order made by the AAC in the quantum appeal filed by the assessee against the ITO's order of assessment. In the present case, a sum of Rs. 4,781 was found to be the excess amount of tax deposited by the assessee as a result of the AAC's order deciding the assessee's quantum appeal and the same was directed to be refunded to the assessee together with interest payable in accordance with s. 214(1) of the Act r/w r. 119A of the IT Rules, 1962. THE Revenue appealed against the award of interest to the Tribunal, but the Tribunal has upheld the direction given by the AAC. THEreafter, this reference has been made at the instance of the Revenue to answer the above question of law.