9911796707
TMI Blog2002 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... um of Rs.3,01,634 was still payable as income-tax. The said demand, however, later on was reduced to Rs.2,93,931 by reasons of two rectificatory orders dated May 11, 1972 and October 16, 1973. An appeal was preferred there against by the assessee and by a judgment dated October 30, 1975, the appeal was allowed in terms whereof the assessee obtained relief to the extent of Rs.3,07,022. As regards the assessee's claim to relief under sections 80G and 80J of the said Act (a claim to development rebate), the appellate authority asked the Income-tax Officer to carry out the directions contained in the said appellate order. The Assessing Officer, pursuant to or in furtherance thereof, by an order dated August 29, 1977, made reassessment in terms whereof the total income of the assessee stood computed at Rs.41,28,437. The Assessing Officer, inter alia, held that the assessee was entitled to carry forward its deficient claim under section 80G in respect of industrial undertaking to the extent of Rs.1,15,953. However, it was observed that the assessee has failed to furnish evidence on certain points so as to enable the Assessing Officer to carry out the directions of the Appellate Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtion from that order has also been extracted by the Income-tax Officer while disposing of the assessee's petition headed section 154, Income-tax Act. In the result, we modify the learned Commissioner's order and hold that the assessee is entitled to interest for the period from February 1, 1976 to August 28, 1977, on that portion of the refund amount, which required no further investigation or verification at the Income-tax Officer level. As regards the balance claim of the assessee there was no mistake apparent from the record." Hence this reference. Mr. Aggarwal, learned counsel appearing on behalf of the assessee, would submit that the learned Tribunal committed an error in passing the impugned order in so far as it failed to take into consideration that in terms of section 244 of the Income-tax Act, the interest becomes payable as soon as the refund becomes due and if the same is not paid within a period of three months, interest becomes automatically payable. Strong reliance in this connection has been placed on Trustees of H.E.H. the Nizam's Miscellaneous Trust v. CWT [1984] 150 ITR 423 (AP) and CIT v. Graphite India Ltd. [1994] 209 ITR 318 (Cal). Learned counsel would co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted: Provided that where the amount so found to be in excess was paid in instalments, such interest shall be payable on the amount of each such instalment or any part of such instalment, which was in excess, from the date 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh High Court was dealing with a matter of refund under the Wealth-tax Act. In the facts of that case, it was held that the assessee was entitled to refund in terms of section 34A of the Wealth-tax Ad, 1957, in terms whereof such refund is liable to be paid as a result of the order passed in appeals including a rectification proceeding and, secondly, the amount has to be refunded to the assessee "without his having to make any claim in that behalf." In the instant case, the claim for refund did not arise directly as a result of any order passed in appeal but only pursuant to the directions issued therein in terms whereof the Assessing Officer was required to pass a separate order on the basis of the evidence which was to be furnished by the assessee himself, In Graphite India Ltd. [1994] 209 ITR 318 (Cal), the following observations were made: "The respondent-assessee is also entitled to get interest under section 244(1) of the said Act in accordance with law since the amount refundable to the respondent-assessee was not refunded within a period of three months from the end of the month in which the appellate order was passed by the Commissioner of Income-tax (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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