Commissioner of Income Tax, Madras vs Amalgamations Ltd.

Leave granted.

The question raised before the High Court for reference was whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to interest u/s 214 from 1-4-1970 to 31-8-1978, the date of completion of the set-aside assessment even though the regular assessment was made on 28-12-1970 in the assessee''s case. There was a sharp difference of opinion among the High Court as to the interpretation of Section 214. It is very surprising that the High Court did not think that this was a question of law which should be gone into and decided by the High Court itself. In any event, the controversy now stands concluded by the decision of this Court in the case of Modi Industries Limited, Modinagar and Others Vs Commissioner of Income Tax, Delhi and Another . Therefore, we do not propose to send the case back to the High Court for examining the issue. We treat the question as to have been referred before this Court and we answer the question in the negative and in favour of the Revenue.

The appeal is allowed. No order as to costs.