JUDGMENT
S.K. Keshote, J.
1. On an application filed under Section 256(1) of the IT Act, 1961, the Tribunal has referred the following question for the opinion of this Court:
“Whether, on the facts and in the circumstances of the case and in law the Tribunal was justified in directing the AO to allow interest on excess TDS, amount also despite the fact that interest under Section 214 is only allowable on advance-tax payment ?”
2. In this case, the assessee has paid tax to the tune of Rs. 2,72,288 by way of tax deduction at source (TDS). The assessment has been completed under Section 143(3) of the Act and a demand of Rs. 1,18,202 was raised against the assessee. The balance amount has been refunded to the assessee, but no interest has been paid. The assessee claimed before the AO that on the amount refunded, interest should be paid as required under Section 214 of the IT Act.
3. ITO has rejected the claim of the assessee. In appeal before the CIT(A), CIT(A) also dismissed the appeal of the assessee. In appeal before the Tribunal, Tribunal has allowed the claim of the assessee following its earlier order in the case of this very assessee.
4. None has appeared for the assessee though this matter has been listed two-three times.
5. Heard learned counsel for the Revenue, Mr. Mathur. He brought to our notice the decision of this Court in case of CIT v. Hindustan Engineering Co. (1995) 215 ITR 527 (Raj), wherein this Court has taken the view that there is no provision for payment of interest on excess TDS. Even if refund is due on account of excess tax which has been paid in the form of TDS, there is no question of interest on that excess amount, which has been refunded after assessment.
6. Following the view taken by this Court in the case of CIT v. Hindustan Engineering Co. (supra), we feel that Tribunal has committed the error in directing to allow the interest under Section 214 on the excess TDS amount.
7. In the result, we answer the question in negative i.e., in favour of Revenue and against assessee.
8. Reference so made stands disposed of accordingly.