A.S. GLITTRE D/5 I/S GARONNE & ORS. vs COMMISSIONER OF INCOME TAX, KERALA- 11

The Supreme Court addressed the issue of whether payments made under Section 172(4) of the Income-tax Act can be considered as advance tax payments eligible for interest under Section 214. The Court held that such payments, treated as advance tax by virtue of Section 172(7), do indeed qualify for interest under Section 214, thus entitling the assessees to interest on the excess amounts refunded. The judgment of the Kerala High Court was set aside, and the Income Tax Officer was directed to allow the interest claims.