SHRI ANUP KUMAR MITRA,KOLKATA vs. ITO, WD-44(1), KOLKATA, KOLKATA

The only issue that arises for our consideration is, whether the interest on refund u/s 214 of the Act, as it existed for the Assessment Year 1987-88, entitles the assessee for grant of interest on refund due, from the first date of the financial year. Section 214 of the Act, as it then existed, reads as follows:- “Section 214”- Interest payable by Government – (1) The Central Government shall pay simple interest at fifteen per cent per annum on the amount by which the aggregate sum of any instalments of advance tax paid during any financial year in which they are payable under sections 207 to 213 exceeds the amount of the assessed tax from the 1st day of April nest following the said financial year, and where any such instalment is paid after the expiry of the financial year, during which it is payable by reason of the provisions of Section 213, interest as aforesaid shall also be payable on that instalment from the date of its payment to the date of regular assessment : Provided that in respect of any amount refunded on a provisional assessment under section 141A, no interest shall be paid for any period after the date of such provisional assessment.”

A plain reading of the Section takes us to the conclusion that the interest has to be calculated from the 1st day of April of the financial year. Not doing so, is a mistake apparent on record. Thus, we allow the appeal of the assessee and direct the Assessing Assessment Year: 1987-88 Shri Anup Kumar Mitra Officer to compute interest u/s 214 of the Act on the Officer to compute interest u/s 214 of the Act on the amount of aggregate sum of amount of aggregate sum of instalments paid as advance tax by the assessee instalments paid as advance tax by the assessee during the financial year, during the financial year, which exceeds the amount of assessed tax.

In the result, appeal of the assessee is allowed. In the result, appeal of the assessee is allowed.