Modipon Ltd. vs Commissioner of Income Tax

In this reference u/s 256(1) of the Income Tax Act, 1961, the following questions of law arise for our opinion:

(1) Whether, on the fact and in the circumstances of the case, the Tribunal was right in law in holding that the assessed was not entitled to interest on the delayed refund of interest due and payable u/s 214 and/or 244 of the Act from the due date to the date of payment?

Whether, on the facts and in circumstances of the case, the Tribunal was right in law holding that the assessed was not entitled to interest on the refund of interest levied and paid u/s 220(2) of the Act from the date of payment to the date of refund?

Whether, on the facts and in the circumstances of the case, the Hon''ble ITAT was correct in directing to allow the interest u/s 214 to the assessed up to the date of granting of refund and not up to date of regular assessment?

In respect of question No. 1, the admitted position is that in view of the decision of this Court in CIT v. J.K. Synthetic Ltd. (IT Reference Nos. 54 and 55 of 1985, dated 6-3-2007), this question is required to be answered in the negative in favor of the assessed and against the revenue.

Insofar as the second question is concerned, this is also admittedly required to be answered in the negative in favor of the assessed and against the revenue in view of the decisions of this Court in Modipon Ltd. Vs. Commissioner of Income Tax,

Insofar as the third question is concerned, that too is covered by the judgment of this Court delivered in the case of J.K. Synthetic Ltd. (supra). This question is answered in the affirmative, in favor of the assessed and against the revenue.

The reference is disposed of accordingly.