IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No 127 of 1985 For Approval and Signature: Hon'ble CHIEF JUSTICE MR DM DHARMADHIKARI and Hon'ble MR.JUSTICE M.S.SHAH ============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements? 2. To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement? 4. Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder? 5. Whether it is to be circulated to the Civil Judge? : NO -------------------------------------------------------------- COMMISSIONER OF INCOME-TAX Versus SANDESH LTD -------------------------------------------------------------- Appearance: MR AKIL QURESH FOR MR MANISH R BHATT for Petitioner MR SN SOPARKAR for Respondent No. 1 -------------------------------------------------------------- CORAM : CHIEF JUSTICE MR DM DHARMADHIKARI and MR.JUSTICE M.S.SHAH Date of decision: 21/11/2000 ORAL JUDGEMENT (Per : MR.JUSTICE M.S.SHAH) In this reference, at the instance of the revenue, the following question is referred to us in respect of assessment year 1976-77 :- "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that CIT(A) was competent to entertain the ground of appeal, alongwith other grounds, regarding interest under section 214 ?" 2. At the hearing of the reference, Mr Akil Qureshi, learned counsel for the revenue fairly states that the question raised herein is squarely covered against the revenue in CIT vs. T.V. Sundaram Iyengar & Sons Ltd., (1999) 236 ITR 524. In the said decision, the Madras High Court has held that the appeal provisions should be construed in a reasonable manner. Interest on refund is really a part of the refund and interest and refund are not two different things. Where there is a total denial of liability on the part of the revenue to pay interest on refund, an appeal would lie to the next appellate authority. 3. Following the aforesaid decision, we answer the question in the negative i.e. in favour of the assessee and against the revenue. The reference accordingly stands disposed of with no order as to costs. (D.M. Dharmadhikari, CJ) (M.S. Shah, J.) sundar/-