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TMI Blog1991 (8) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... tes when the said amount became-refundable. It is stated that, under section 240 of the Income-tax Act, 1961, where, as a result of any order passed in appeal or other proceedings under the Act, the refund of any amount becomes due, the Assessing Officer shall refund the amount without the assessee having to make any claim in their behalf. Under section 244(1) of the Act, where a refund is due in pursuance of an order referred to in section 240 of the Act and the Assessing Officer does not grant the refund within a period of 3 (three) months from the end of the month in which such order is passed, the Central Government shall pay to the claimant simple interest at 12 per cent. per annum on the amount of refund due from the date immediately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmencement in the payment of any sum due under such completed assessment, the provisions of the Income-tax Act, 1961, relating to interest payable by the Central Government on refunds and interest payable by the assessee for default shall apply. The attention of this court has been drawn to CIT v. Sassoon J. David and Co. Ltd. [1990] 181 ITR 363 (Bom). There is also a reference to an unreported judgment in Case No. FMAT 1819 of 1985. The judgment has been delivered by the Division Bench consisting of their Lordships the Hon'ble Mr. Justice G. N. Ray (as his Lordship then was) and the Hon'ble Mr. Justice S. K. Hazari on July 17, 1990. Dr. Pal has tried to distinguish the case reported in New woodlands v. CIT [1982] 138 ITR 795 (Ker). He has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edural portion as envisaged under section 244 of the Income-tax Act, 1961, cannot solve the present problem. It is strongly argued that it is well-settled that, in a fiscal enactment, the Legislature has a larger discretion in the matter of classification. So long as there is no departure from the rule and the persons included in a class are not singled out for special treatment. In fact, reasonable classification has been made between the assessments prior to the introduction of the 1961 Act and those after the introduction of the 1961 Act. According to Mr. Moitra, the question of interest under section 244 of the Act does not arise until a fresh computation of tax is made by a fresh assessment. Considering the submissions of both sides a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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