9911796707
TMI Blog1980 (8) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... erence has been made under this section to the High Court, income-tax shall be payable in accordance with the assessment made in the case: Provided that, if the amount of an assessment is reduced as a result of such reference, the amount overpaid shall be refunded with such interest as the Commissioner may allow ........" The contention raised by the petitioner in the present writ petition is that the Commissioner is bound, as a matter of law, not only to order refund of the amount of tax paid in excess but also to pay interest on the amount of tax paid in excess. It is not open to the Commissioner to say that no interest at all would be paid. Therefore, the orders of the respondents, refusing to pay interest to the petitioner, are ille ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61] 42 ITR 177), by its order dated March 7, 1961, confirmed the judgment of this court. As per the directions of the Tribunal, the Ist respondent did not give effect to the order of the High Court. It is in these circumstances that the petitioner seeks to be paid interest for the assessment year 1943-44, as it is not in dispute that, for the assessment year 1942-43, the amount overpaid has been refunded with interest. The learned advocate for the petitioner contended that the proviso to sub-s. (7) of s. 66 does not say that the reference must be for the same year, but, if the amount of an assessment is reduced as a result of a reference, then the petitioner is entitled to a refund of the overpaid amount with interest, although a referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Madras High Court in S.V.P.N. Sithambara Nadar Sons v. CIT [1968] 67 ITR 45, in which case, the Division Bench of the Madras High Court has considered the provisions relating to s. 66(7) and the proviso thereto. According to the Division Bench, both the substantive provisions in s. 66(7) of the Indian I.T. Act, 1922, and the proviso thereto deal with the same assessment which formed the subject-matter of the reference it will, therefore, be inappropriate to say that if as a result of a principle settled by the High Court in a reference in respect of one year, a relief by way of refund is granted for other years by applying that principle, such refund results from the reference itself. The construction placed by the Division Bench is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Madras High Court not to be permissible in view of the construction put by them on the relevant provisions coming up for consideration in the present petition. On behalf of the petitioner, reference was made to a: decision of the Patna High Court in the case of Liquidators of Pursa Ltd. v. CIT [1957] 32 ITR 603. This ruling is of no help to the petitioner because it merely construed the provisions of s. 66(7). This authority would be applicable to the assessment year 1942-43, and not to the assessment year 1943-44, which is the subject-matter of this petition. So far as the assessment year 1942-43 is concerned, it is common ground that the overpaid tax has been refunded with interest and there is no grievance. In the result, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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