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TMI Blog2012 (8) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... interest u/s 214, the "regular assessment" means original assessment made u/s 143/144. Section 214 does not provide for payment of compensation by the Revenue to the assessee in whose favour a refund order has been passed and as that Sandvik Asia Limited Versus Commissioner Of Income-Tax And Others [2006 (1) TMI 55 - SUPREME COURT] has not been correctly decided relied by assessee for claim of interest - direction to the Registry to place this matter before Hon'ble the Chief Justice on the administrative side for appropriate orders - against assessee. - Special Leave to Appeal (Civil) No(s) .11406 /2008 - - - Dated:- 23-8-2012 - Chief Justice And Madan B Lokur , JJ. For Appellant : Mr. Rajiv Dutta , Sr.Adv . Mr. Rupesh Kumar, Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay in paying to it the amounts admittedly due. In other words, the assessee was entitled to a refund. A refund order was passed in favour of the assessee . The question was, whether the Revenue was obliged to pay interest on the amount ordered to be refunded . The argument in Sandvik Asia [supra] on behalf of the assessee was that it was entitled to compensation by way of interest for the delay in payment of the amounts lawfully due to it which were wrongly withheld for a long period of seventeen years. Vide Paragraph (23) of Sandvik Asia [supra] , the Division Bench held that, in view of the express provisions of the Act, the assessee was entitled to compensation by way of interest for the delay in payment of the amounts lawfully d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force. Explanation: For the purposes of this section, where any interest or other sum as aforesaid is credited to any account, whether called 'Interest payable account' or 'Suspense account' or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. 195A . Where, under an agreement or other arrangement, the tax chargeable on any income referred to in the foregoing provisions of this Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement Commission under sub-section (4) of section 245D , the amount on which interest was payable under sub-section (1) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and in a case where the interest is reduced, the Assessing Officer shall serve on the assessee , a notice of demand in the prescribed form specifying the amount of the excess interest payable and requiring him to pay such amount; and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly. (2) On any portion of such amount which is refunded under this Chapter, interest shall be payable only up to the date on which the refund was made. 219. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e immediately following the expiry of the period of three months aforesaid to the date of the order granting the refund. Explanation: If the delay in granting the refund within the period of three months aforesaid is attributable to the assessee , whether wholly or in part, the period of the delay attributable to him shall be excluded from the period for which interest is payable. (2) Where any question arises as to the period to be excluded for the purposes of calculation of interest under the provisions of this section, such question shall be determined by the Chief Commissioner or Commissioner whose decision shall be final. (3) The provisions of this section shall not apply in respect of any assessment for the assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on which such instalment was paid to the date on which the refund is granted: Provided further that no interest under this sub-section shall be payable for a period of one month from the date of the passing of the order in appeal or other proceeding: Provided also that where any interest is payable to an assessee under this sub-section, no interest under sub-section (1) shall be payable to him in respect of the amount so found to be in excess. [2] Where a refund is withheld under the provisions of section 241, the Central Government shall pay interest at the aforesaid rate on the amount of refund ultimately determined to be due as a result of the appeal or further proceeding for the period commencing after the expiry of thr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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