9911796707
TMI Blog1980 (2) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ely paid the tax on 27th March, 1957. The appellant bad, however, taken up the matter in appeal to the Income-tax Tribunal and then to the High Court. The reference was answered in favour of the assessee/appellant on 7th April, 1966, with a direction by the High Court to refund the excess tax. A consequential Order by the Tribunal was passed on 16th September, 1966, and the Department refunded the excess amount of tax which had been realised from the appellant. The appellant, however, claimed that he was entitled to interest on the amount refunded to him under s. 66(7) of the Indian I.T. Act, 1922, which provides that if an amount of assessment is reduced on a reference, the amount overpaid should be refunded with such interest as the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We feel that it is unnecessary to decide the issue of jurisdiction, because, in our view, the finding of the learned judge that the appellant's case was governed by the old Act of 1922, cannot be sustained and the suit will in any case have to be dismissed even on merits. It is common case that if it is held that the appellant's case is governed by the 1961 Act, then be has no claim for the interest for the payment of amount of the refund, because, the same was paid to him within the period prescribed in s. 244 of the I.T. Act, 1961. The sole claim by the appellant is based on the assumption, which is erroneous that it is the old Act, 1922, which is applicable. In Pandyan Insurance Co. Ltd. v. CIT [1969] 73 ITR 12 (Mad), the assessment rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge has preferred to follow Raja Jagdambika Pratap Narain [1970] 76 ITR 619, as against Pandyan Insurance Co. Ltd. [1969] 73 ITR 12 (Mad). In the circumstances it is apparent that the view of the learned single judge runs contrary to the view of the Supreme Court and can no longer be considered. As a matter of fact, in the Commentary on Income Tax by Kanga and Palkhivala, 7th Edn., Vol. 1, at p. 1294, under the heading " Refund and Interest ", after noticing the decision in Panchanatham Chettiar [1975] 99 ITR 579 (SC), it is mentioned that Raja Jagdambika Pratap Narain [1970] 76 ITR 619 (All) and Raja Ram Kumar Bhargava v. Union of India [1973] 92 ITR 312 (Delhi) (this very case under appeal before us) must be deemed to be overruled on this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tend that if the law laid down in [1975] 99 ITR 579 (SC) is to be applied the appellant's claim for payment of interest on the refund is not sustainable. He, however, seeks to urge that as [1975] 99 ITR 579 (SC) has not noticed the earlier decision in Kalawati Devi Harlalka [1967] 66 ITR 680 (SC) and has also not made a reference to the Income-tax (Removal of Difficulties) Order, 1962, it has no binding force. We find this argument unacceptable. The Supreme Court having clearly decided that in a case like the present the Act of 1961 applies, we cannot be asked not to follow that decision on the plea that this particular argument which is now being raised by the counsel for the appellant does not appear to have been raised before the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifficulties Order makes a claim for refund to be regarded as part of the proceedings for assessment that an assessee can take advantage of it. But the condition precedent for invoking the Order of 1962 necessarily is that the claim for refund should have been filed before the commencement of the 1961 Act. In the instant case it was only by the decision of the High Court of April 7, 1966, that the assessee became entitled to the refund. The appellant naturally filed his claim for refund after the commencement of the 1961 Act and cl. (a) of sub-s. (2) of s. 297 of the 1961 Act requires claim to be filed before the coming into force of the 1961 Act and was clearly inapplicable. Mr. Gobind Das, therefore, cannot seek any assistance from the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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