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TMI Blog2016 (9) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... e. In the case on hand, what is to be looked into is whether the delay in refund was due to a cause attributable to the assessee. The facts involved in the case would disclose that the return of income for the assessment year 1997-98 was filed only on 01/02/2000 on account of delay in auditing. Return was filed belatedly and thereby it was rejected. Thereafter an application was filed under Section 119(2)(b), seeking for condoning the delay in filing the return, was rejected and ultimately the matter reached this Court wherein this Court had directed the delay to be condoned. There cannot be two ways to look at it. Admittedly, there had been delay on the part of the assessee which had given rise to a situation to condone the same. Delay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be filed only on 01/02/2000. It is stated that the Society had paid advance tax of ₹ 10 lakhs and Tax Deducted at Source (TDS) amounting to ₹ 47,957/-. 3. When the return was filed, the taxable income was found to be nil and therefore the petitioner became eligible for refund of ₹ 10,47,957/- as provided under Section 247 of the Act. Application for refund was filed before the assessing authority on 01/02/2000. However, the same was rejected on the ground that the return was filed belatedly, in terms of Ext.P1 order dated 01/08/2000. Petitioner filed an application under Section 119(2) (b) of the Act before the Central Board of Direct Taxes (CBDT) seeking condonation of delay in filing the returns, which came to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the delay is attributable to the assessee, once the return is accepted and refund is ordered, such an approach is clearly illegal. This aspect of the matter had been completely ignored while passing the impugned orders. 5. Statement has been filed on behalf of the 1st respondent inter alia supporting the stand taken in the matter. It is stated that the petitioner could claim interest on the refund amount in terms of 244A(1) only if the delay in issuing refund could not be attributable to the petitioner. It is stated that there is delay on the part of the assessee in filing the return which requires to be excluded while a claim for interest has been processed. It is stated that the assessee has already received the refund to the extent f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess amounts of tax are collected from an assessee or any amounts are wrongfully withheld from an assessee without authority of law, the Revenue must compensate the assessee. 31. At the initial stage of any proceedings under the Act any refund will depend on whether any tax has been paid by an assessee in excess of tax actually payable to him and it is for this reason that Section 237 of the Act is phrased in terms of tax paid in excess of amounts properly chargeable. It is, however, of importance to appreciate that Section 240 of the Act, which provides for refund by the Revenue on appeal, etc., deals with all subsequent stages of proceedings and therefore is phrased in terms of any amount becoming due to an assessee. 32 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enon. Both these were cases where the Court was called upon to decide whether further interest was payable by the Revenue on interest which had to be repaid to the assessee. 34. In our opinion, the appellant is entitled to interest under Section 244 and/or Section 244-A of the Act in accordance with the terms and provisions of the said sections. The interest previously granted to it has been computed up to 27-3-1981 and 31-3- 1986 (under different sections of the Act) and its present claim is for compensation for periods of delay after these dates. 9. In H.E.G.Limited (supra), t he Apex Court was considering the meaning of the words any amount due in Section 244A. It was held that interest component on TDS would partake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary particulars. As already indicated, Section 244A(2) imposes a restriction on payment of interest when the procedure for refund is on account of the delay attributed to the assessee. In the case on hand, what is to be looked into is whether the delay in refund was due to a cause attributable to the assessee. The facts involved in the case would disclose that the return of income for the assessment year 1997-98 was filed only on 01/02/2000 on account of delay in auditing. Return was filed belatedly and thereby it was rejected. Thereafter an application was filed under Section 119(2)(b), seeking for condoning the delay in filing the return, was rejected and ultimately the matter reached this Court wherein this Court had directed the del ..... X X X X Extracts X X X X X X X X Extracts X X X X
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