COMMISSIONER OF INCOME-TAX VS AMALGAMATIONS LTD.
1999 P T D 939
[232 I T R 318]
[Supreme Court of India]
Present: S. C. Sen and S. P. Kurdukar, JJ
COMMISSIONER OF INCOME-TAX
Versus
AMALGAMATIONS LTD.
Civil Appeal No.4683 of 1997 and S.L.P. (Civil) No.14332 of 1986, decided on 15/07/1997.
(Appeal from the judgment and order, dated August 12, 1986 of the Madras High Court in T.C.P. No.302 of 1985).
Income-tax
----Advance tax---Interest---Original assessments set aside and assessments completed afresh ---Assessee entitled to interest only up to date of original assessment---Indian Income Tax Act, 1961, S.214.
Against the refusal of the High Court to refer the question whether the assessee was entitled to interest under section 214 of the Income Tax Act, 1961, from April 1, 1970 to August 31, 1978 the date of completion of the set aside assessment, even though the regular assessment was made on December 28, 1970, in the assessee's case, the Department filed petitions for special leave to appeal to the Supreme Court.
The Supreme Court granted leave, treated the question as referred to it and answered it against the assessee and in favour of the Department.
Modi Industries Ltd. v. CIT (1995) 216 ITR 759 (SC) fol.
Ranvir Chandra, Senior Advocate (B.K. Prasad and S. Rajappa, Advocates with him) for Appellant.
T.A. Ramachandran, Senior Advocate (Mrs. Janaki Ramachandran, Advocate with him) for Respondent.
ORDER
Leave granted.
The question raised before the High Court for reference was "whether, on the facts and the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to interest under section 214 from April 1, 1970 to August 31, 1978, the date of the completion of the set aside assessment even though the regular assessment was made on December 28, 1970, in the assessee's case". There was a sharp difference of opinion among the High Courts as to the interpretation of section 214. It is very surprising that the High Court did not think that this was a question of law which should be gone into and decided by the High Court itself. In any event the controversy now stands concluded by the decision of this Court in the case of Modi Industries Ltd. v. CIT (1995) 216 ITR 759. Therefore, we do not propose to send the case back to the High Court for examining the issue. We treat the question as to have been referred before this Court and we answer the question in the negative and in favour of the Revenue.
The appeal is allowed. No order as to costs.
M.B.A./1872/FC/ Appeal allowed.