2001-VIL-363-GUJ-DT

Equivalent Citation: [2002] 256 ITR 596, 172 CTR 546, 122 TAXMANN 373

GUJARAT HIGH COURT

Date: 28.08.2001

COMMISSIONER OF INCOME TAX

Vs

GUJARAT STATE WAREHOUSING CORPORATION.

BENCH

Judge(s)  : M. S. SHAH., D. A. MEHTA.

JUDGMENT

The judgment of the court was delivered by

M.S. SHAH J.-We have heard Mr. B.B. Naik, learned standing counsel for the Revenue, and Mr. Manish J. Shah for Mr. J.P. Shah, learned counsel for the assessee.

In this reference, two questions are referred at the instance of the Revenue and one question is referred at the instance of the assessee.

The first question referred at the instance of the Revenue is in respect of the assessment years 1973-74 to 1975-76. The question is as under:

"Whether the assessee is entitled to interest under section 244(1A) in respect of interest payments under sections 215, 217 and 220(2) of the Income tax Act, 1961?"

Mr. Shah, learned counsel for the assessee, submits that the controversy raised herein is concluded in favour of the assessee as per the decision of the Madras High Court in CIT v. Needle Industries Pvt. Ltd. [1998] 233 ITR 370, the Madhya Pradesh High Court in CIT v. Sardar Balwant Singh Gujral [1990] 86 CTR 64 and the Kerala High Court in CIT v. Ambat Echukutty Menon [1988] 173 ITR 581.

Having perused the aforesaid decisions, we find no reason not to agree with the view taken in the aforesaid decisions. Accordingly, the question is answered in the affirmative, i.e., in favour of the assessee and against the Revenue.

The second question referred at the instance of the Revenue in respect of the assessment years 1977-78 and 1978-79 is as under:

"Whether the assessee is entitled to interest under section 214 on advance tax payments?"

Learned counsel for the parties agree that the question is covered by the decision of the apex court in Modi Industries Ltd. v. CIT [1995] 216 ITR 759, in favour of the assessee.

In view of the above decision, we answer this question in the affirmative, i.e., in favour of the assessee and against the Revenue.

The last question in this reference is at the instance of the assessee and is for the assessment years 1977-78 and 1978-79. The question is as under:

"Whether the assessee is entitled to interest under section 244(1A)/214 on payment of tax made under section 140A of the Income-tax Act, 1961?"

Learned counsel for the assessee submits that the controversy raised herein is concluded by the decision of the apex court in Modi Industries Ltd. v. CIT [1995] 216 ITR 759, as explained by the Punjab and Haryana High Court in CIT v. Hansa Agencies Pvt. Ltd. [1998] 234 ITR 271 and by the Karnataka High Court in CIT v. N.G.E.F. Ltd. [2000] 244 ITR 665.

We find no reason to take a different view. We, accordingly, answer the question in the affirmative, i.e., in favour of the assessee and against the Revenue.

The reference stands disposed of accordingly.

 

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