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TMI Blog2004 (1) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... 's order dated 18th February, 1999 and in the matter of processing of income-tax return under section 143(1)(a) of the Income-tax Act, 1961 for the assessment year 1996-97, assessee has raised the following effective grounds of appeal : "The learned lower authorities have erred in holding that the appellant was entitled to interest under section 244A of the Income-tax Act, at Rs. 50,674 only (for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing of income-tax return under section 143(1)(a) of the Act. 4. We find that section 244A(2) categorically provides that, "If the proceedings resulting in the refund are delayed for reasons attributable to the assessee, whether wholly or in part, the period of the delay so attributable to him shall be excluded from the period for which interest is payable, and where any question arises as to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the assessee, is a classical example of violation of one of the very fundamental principles of natural justice 'audi alteram partem' i.e. no person shall be condemned unheard. 5. The question as to whether or not the delay in issuance of refund is attributable to the assessee, as is the scheme of the Act, is to be settled by the Chief Commissioner or the Commissioner but then they do not hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties. However, in our considered view, it is not open to the Assessing Officer to take a unilateral and ex parte decision on the issue, as has been done in the case before us. 6. It is also noteworthy that interest under section 244A is a compensatory interest as, under this section, revenue is paying interest only on assessee's money which is in excess of his tax dues and for the period for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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