9911796707
TMI Blog1979 (7) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act for the relevant year showing turnover in the taxable territories of Rs. 28,397 and according to the petitioner no tax was payable under the Act. However, the Ist respondent made a provisional assessment under s. 14A of the Act and demanded by way of tax a sum of Rs. 2,20,000. The petitioner paid the amount under protest and requested the 1st respondent to cancel the notice issued under s. 14A of the Act. The 1st respondent passed an assessment order on October 31, 1962, holding that the excess profit that accrued in the taxable territories was Rs. 1,62,868 and the tax thereon under the Act was Rs. 1,08,579. The 1st respondent thereupon directed refund of the sum of Rs. 1,11,421 out of Rs. 2,20,000 paid by the petitioner. The peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent, thereafter, by an order dated April 30, 1970, granted interest on Rs. 1,11,421 from September 16, 1943, to October 31, 1963. As the interest for the remaining amount was not awarded, the petitioner filed an application on April 29, 1971, before the 2nd respondent seeking interest on Rs. 1,08,579 from September 16, 1943, till 1968, when refund was granted. The petitioner also made representation in this connection to the 3rd respondent and the respondent rejected the application of the petitioner on the ground that there was no refund due on the date of regular assessment and, therefore, no interest was payable on Rs. 1,08,579. The petitioner has filed the present proceedings under art. 226 of the Constitution of India to challe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irections, orders of refund are passed by the officer who has passed the initial assessment order. In my judgment, the order of rectification passed with a view to give effect to the orders of the higher authorities results into a fresh order of assessment and the assessee would be entitled to refund in consequence of such rectification order which is really in the nature of a regular assessment order. A reliance in this connection by Mr. Patil on the decision of the Punjab High Court in the case of CIT v. R. B.Jodhamal Kuthiala [1963] 49 ITR 383 is very appropriate. The Punjab High Court took the view that as s. 14A(7) provides that the calculation of the interest is to be " from the date of payment of such excess tax to the date of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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