Ajit Kumar Sengupta, J. - (1.) At the instance of the Commissioner of Income-tax, the following question of law has been referred to this court under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1976-77 : "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in directing the Income-tax Officer to take the payment of Rs. 37,500 made on January 16, 1976, for the purpose of calculation of interest under Section 214 of the Income-tax Act, 1961 ?"
(2.) The facts shortly stated are that in respect of the assessment year 1976-77, the Income-tax Officer found that the assessee has paid advance tax on the following dates : JUDGEMENT_454_ITR181_1990Html1.htm
(3.) At the time of completion of the assessment, a question regarding the allowance of interest to the assessee under Section 214 of the Income-tax Act, 1961, arose. The Income-tax Officer felt that interest under Section 214 was not available to the assessee on the sum of Rs. 37,500 which had been paid on January 16, 1976, as it was paid after the last date for the payment of instalments which fell on December 15, 1975. He was, therefore, of the view that the amount paid after the date provided under law could not be eligible for allowance of interest under Section 214. Thus, though the Income-tax Officer worked out a refund as due to the assessee, he declined to grant the assessee's claim for interest under Section 214 on the above grounds.;