9911796707
|
Home
Issues:
- Interpretation of provisions of section 244(1) and section 297(2)(i) of the Income-tax Act, 1961. - Entitlement to interest on delayed refunds under the Income-tax Act, 1961. - Applicability of section 240 in cases of delayed refunds. - Comparison with relevant legal precedents and judgments. Analysis: The High Court of BOMBAY addressed the issue of whether the assessee-company was entitled to interest under section 244(1) read with section 297(2)(i) of the Income-tax Act, 1961, despite the assessments being completed under the provisions of the Indian Income-tax Act, 1922. The case involved assessments for the years 1958-59 and 1959-60, which were finalized in 1971 following appeals and references. The Income-tax Officer granted refunds in 1973, prompting the assessee to request interest on the refunded amounts. The Income-tax Officer rejected the request citing the lack of provision for interest on delayed refunds under the 1922 Act. The Appellate Assistant Commissioner ruled in favor of the assessee, relying on relevant legal decisions and holding that interest was due under section 244 of the 1961 Act. The Tribunal also upheld the assessee's entitlement to interest on delayed refunds, emphasizing the applicability of section 297(2)(i) of the Income-tax Act, 1961. The Revenue challenged this decision, arguing that section 244(1) was not applicable in this case. The Tribunal, after considering the arguments, concluded that section 244(1) was indeed applicable, and the assessee was entitled to interest on delayed refunds. The court analyzed the Supreme Court decisions in similar cases and distinguished the facts of the present case from those in the precedents cited by the Revenue. The court further examined the interplay between sections 240, 244, and 297(2)(i) of the Income-tax Act, 1961, in determining the entitlement to interest on delayed refunds. The court rejected the Revenue's argument that section 240 did not apply in this case due to the High Court's order under the old Act, emphasizing the harmonious reading of the relevant provisions. Drawing parallels with a Supreme Court decision in a similar context, the court affirmed that section 297(2)(i) read with sections 244 and 240 was applicable in the present case, ultimately ruling in favor of the assessee's entitlement to interest on delayed refunds under the Income-tax Act, 1961.
|
