1989 TAX. L. R. 262 ::(1989) 1 BankCLR 440 ::(1989) 176 ITR 508 ::(1989) 1 Ker LT 382 ::(1989) 44 Taxman 248

Kerala High Court

Hon'ble Judge(s): V. Sivaraman Nair, M. Fathima Beevi , JJ

Interest - Assessee Bank holding securities and shares - Tax deducted at source and paid to Govt. - Tax finally determined and amount refunded - No interest paid - Assessee's claim for interest on analogy of interest paid on advance tax rejected - Held, assessee was not entitled to interest and S. 4 of Income-tax Act was not violative of Art. 14 of Constitution. Income-tax Act (1961) , S.4, S.193, S.194, S.194A, S.200, S.214, S.215, S.217— Constitution of India , Art.14— The assessee petitioner a company engaged in the business of Banking had investments in the shape of securities and shares. Income-tax had been deducted at source on the interest due to the petitioner on securities held by it and dividends payable to the petitioner on shares and paid to the Central Government under the provisions of the Act by the persons authorised by the Act to deduct the tax at source during previous years relating to the relevant assessment years. During all such previous years the tax deducted at source exceed the tax finally determined in respect of the said assessment years and refund was allowed to the assessee petitioner. The direction to refund the excess amount collected did not provide for the payment of interest to the assessee. It was contended by assessee that the Income-tax paid in advance by the assessee and the tax deducted at source are to be treated as ad....