Commissioner Of Income-Tax vs Ajoy Paper Mills Ltd. on 18 April, 1989
A Division Bench of the Calcutta High Court in CIT v. Ajoy Paper Mills Ltd. , held that, under sub-section (1) of section 214, interest shall be payable by the Central Government if two conditions were satisfied : firstly, instalments of advance tax must have been paid during the financial year in which they are payable under sections 207 to 213; secondly, the agreed sum of instalments should exceed the amount of tax determined on regular assessment. Rejecting the contention of the Revenue that the assessee cannot claim interest under section 214 unless payments have been made in accordance with the provisions of the Act within the time provided under the law, it was observed as follows (at page 457) :