1980 TAX. L. R. 614 ::(1980) 15 Cur Tax Rep 239 (AP) ::(1979) 2 Andh W R 378 ::(1979) 1 Andh LT 309 ::(1979) 2 ITJ 252 ::(1979) 2 Taxman 110

Andhra Pradesh High Court

Hon'ble Judge(s): A Sambasivarao , C.J. AND Ramanujulu Naidu , J

Income-tax Act (1961) , S.214, S.244— 'Regular assessment' - Words used in S. 214 refer to assessment made by I-T.O. under S. 143 or S. 144 on first occasion and not to consequential order passed by him as result of an order in appeal. 1977 (Tax LR 252 (Cal) and 1978 Tax LR NOC 112: 116 ITR 40 (Cal), Dissented from. In the present case, the assessee paid advance tax for the assessment year in question. At the time of assessment he claimed exemption from tax under S. 11. It was rejected by the I.-T.O. In appeal, the A.A.C. upheld the claim for exemption. In further appeal, the Tribunal up held the AAC's order. In consequence of the AAC's order, the I.-T.O. passed a consequential order determining the refund due to the assessee which amount included the entire amount of advance tax paid for that year. The assessee claimed interest on the amounts of advance tax paid and refunded under Section 214 which was not allowed by the I.-T.O. Held that it is not S. 214 but S. 244 r/w S. 240 that applies to the claim of the assessee for refund and therefore the assessee's claim cannot be granted. The words 'regular assessment' used in S. 214 refer to the assessment made by the I.-T.O. under S. 143 or S. 144 on the first occasion and do not include the consequential order passed by him as a result of an order in appeal.(Para 15 ....