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TMI Blog2010 (1) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... NAIR and V. K. MOHANAN JJ. P.K.R. Menon and Jose Joseph for the appellant. Joseph Kodianthara and Terry V. James for the respondent. JUDGMENT The judgment of the court was delivered by 1. C. N. Ramachandran Nair J.- The question raised is whether the Tribunal was justified in holding that the assessee is not liable to pay interest under section 234D on excess refund granted while sending intimation under section 143(1) of the Act for the assessment year 1999-2000. We have heard senior counsel appearing for the appellant-Revenue and senior counsel Sri Joseph Markose appearing for the respondent-assessee. 2. During the previous year relevant for the assessment year 1999-2000 the assessee had remitted substantial amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first place we are of the view that the levy of interest with effect from June 1, 2003, which was not the subject-matter of revision before the Commissioner under section 263 could not have been the subject of decision by the Tribunal. In other words, the Tribunal has granted an unsolicited relief to the assessee, which, in our view, is not within the powers of the Tribunal. In any case, in view of our finding on the effective date of operation of section 234D stated hereunder, there is no need to consider whether the Tribunal could have granted the relief that was not subject-matter of appeal. 3. Section 234D, the scope of which is in issue, is extracted hereunder for easy reference: "234D. Interest on excess refund.-(1) Subject to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 143(3) was completed converting the refund to demand of tax on January 22, 2004, interest could be demanded only for the period from June 1, 2003 till January 22, 2004 which is what is done by the Assessing Officer. We do not find any justification for the Commissioner to give any retrospectivity to section 234D which is what he has done by directing the Assessing Officer to revise the assessment levying interest from the date of refund. In fact the Commissioner has no authority to give retrospective operation to a sub-stantive provision of law providing for interest. The Revenue has no answer to our query as to whether interest under section 234D could be levied in cases of regular assessment completed under section 143(3) prior to Jun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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