Bombay H.C : Whether the interest payable by the Government under s. 214(1) of the IT Act, 1961, is to be calculated on the excess advance tax payment found with reference to the amount of tax determined on the first or the original assessment made by the ITO or with reference to the amount of tax determined on the subsequent or the revised assessment made by the ITO giving effect or the appellate order?

Counsel Appeared

Dr. V. Balasubramanian, S.V. Naik & K.C. Sidhwa , for the Revenue : R.J. Kohla, for the Assessee

S. P. BHARUCHA ,J.:

The question raised by the assessee reads thus : ” Whether the interest payable by the Government under s. 214(1) of the IT Act, 1961, is to be calculated on the excess advance tax payment found with reference to the amount of tax determined on the first or the original assessment made by the ITO or with reference to the amount of tax determined on the subsequent or the revised assessment made by the ITO giving effect or the appellate order? “

2. The question has to be answered, it is agreed, in the light of the Full Bench judgment of this Court in CIT vs. Carona Sahu Co. Ltd. (1984) 146 ITR 452. Following that judgment, the question is answered thus : The interest payable under s. 214(1) of the IT Act, 1961, is to be calculated on the excess advance tax payment found with reference to the amount of tax determined on the first or the original assessment made by the ITO. No order as to costs.

[Citation : 186 ITR 375]