PAHWA CYCLES P LTD Vs. ASSISTANT COMMISSIONER OF INCOME TAX
LAWS(IT)-1994-8-1
INCOME TAX APPELLATE TRIBUNAL
Decided on August 31,1994

Appellant
VERSUS
Respondents

JUDGEMENT

J. Kathuria, Accountant Member - (1.) THE short and interesting issue in this appeal by the assessee for assessment year 1980-81 is whether it was entitled to interest under Section 244(1A) of the Income-tax Act, 1961 ("the Act" for short) on the interest paid by the assessee under Section 220(2) of the Act which was ultimately refunded to it.
(2.) Briefly stated the facts are these. While giving effect to the order of the Appellate Tribunal dated 14-7-1988 for assessment year 1980-81, the Assessing Officer computed the total income at nil. Since the assessee had paid tax of Rs. 75,520, the same was found to be refundable. The Assessing Officer worked out interest under Section 244(1A) of the Act on the aforesaid amount of Rs. 75,520 at Rs. 26,425. The assessee had also paid interest under Section 220(2) of the Act amounting to Rs. 8,490 on 3-2-1987. This was also held refundable by the Assessing Officer because total demand had been reduced to nil. Thus the total amount refundable to the assessee for assessment year 1980-81 was worked out to Rs. 1,10,435 (Rs. 75,520 + Rs. 26,425 + Rs. 8,490). No interest under Section 244(1A) of the Act was, however, allowed on the aforesaid amount of Rs. 8,490. The assessee preferred an appeal before the learned CIT(A) who dismissed the same vide impugned order.
(3.) THE assessee has how approached the Tribunal.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.