- (1.) The Tribunal has referred the following question of law under Section 256(1) of the IT Act, 1961 (hereinafter referred to as "Act") for the asst. yr. 1986-87 for opinion to this Court: Whether, on facts and in the circumstances of the case, learned Tribunal was legally correct in holding that the interest under Section 7B of Companies (Profit) Surtax Act, 1964 was admissible to the assessee, even though, the advance tax of Rs. 18,00,000 due on 15th Dec, 1985 was paid on 8th Feb., 1986 and there is no provision under the said Act entitling the assessee to claim interest where interest is paid after the statutory date, i.e., 15th December, of the relevant previous year though before the 31st March, of the relevant previous year?
(2.) The brief facts of the case are that the assessee-company was not previously assessed, by way of regular assessment under Companies (Profit) Surtax Act, 1964 (hereinafter referred to as 'Act') and as such, it was liable to submit its estimate in respect of correct chargeable amount to surtax in accordance with the provisions of Section 7A(5)(b) and to pay the advance tax by 15th Dec, 1985 in accordance with the provisions of Section 7A(4)(a). The assessee had filed its estimate in time on 16th Dec, 1985 but consequential due tax of Rs. 18 lakhs was not paid upto 15th Dec, 1985 within the financial year. According to the AO as well as the CIT(A) it has not been paid its liability within the stipulated period under the provisions of Section 7A(4)(a), accordingly interest held not payable under Section 7B of the Act. When the matter came up before the Tribunal, the Tribunal allowed interest under Section 7B of the Act.
(3.) We have heard learned standing counsel on behalf of the Revenue and Sri S.D. Singh, learned Counsel appearing on behalf of the assessee respondent.;