9911796707
TMI Blog1990 (9) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner paid a major portion of the penalties imposed and questioned the levy of penalties. By an order, dated March 28, 1967, the Tribunal set aside the penalties with the result that the penalties paid become refundable. It, however, appears that the Department was not satisfied with the orders of the Tribunal dated March 28, 1967, and they sought for a reference. Ultimately, the reference was rejected on September 8, 1972. On April 25, 1974, two refund vouchers were issued in favour of the petitioner for the amount paid by him plus interest for the period September 8, 1972 to April 25, 1974. But, before the petitioner could encash those vouchers, the, encashment thereof was stopped by orders of the Department inasmuch as an ex-partn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid rate on the amount refundable to him for the period July 1, 1967 to September 7, 1972. Now, coming to the second period, the question is whether the proceedings which were taken on the basis of the objection/claim filed by the third party (ex-partner) are proceedings under the Act within the meaning of section 241 as it then stood. For the sake of convenience we may read section 241 at this stage : " 241. Power to withhold refund in certain cases. -Where an order giving rise to a refund is the subject-matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the Assessing Officer is of the opinion that the grant of the refund is likely to adversely affect the Revenue, the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal or further proceeding for the period commencing after the expiry of three months from the end of the month in which the order referred to in section 241 is passed to the date the refund is granted." According to this sub-section, interest is payable with effect from the date on which the period of three months expired from the end of the month in which the order referred to under section 241 is passed. The material before us, however, does not make it clear as to when the said order stopping the refund of encashment vouchers issued on April 25, 1974, were passed. The first respondent Income-tax Officer is to verify this aspect and pay the interest from the appropriate date till October 6, 1978 at the prescribed rate. The orders ..... X X X X Extracts X X X X X X X X Extracts X X X X
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