Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961-Section 244(1) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961-Section 244(1)-lnterest on refund-Where a refund is due to assessee-Assessment made in 1966-Tax determined paid-Appeal - Assessment set aside-Fresh Assessment directed on different basis-Excess amount refunded immediately-Claim of interest u/s 244(1)-Whether any amount became due as a result of Appellate Assistant Commissioner's order-Held, No-Proviso to Sec. 240 was merely clarificatary.The assessee-respondent, a limited company was taken over by the Government. The company received compensation therefor, which amount was brought to tax. Original assessment was completed on January 31,1966. On appeal, the appellate Assistant Commissioner set aside the assessment and directed the Income-Tax Officer to complete the assessment afresh u/s 12-B of the Income Tax Act, 1922 and not u/s 10 (2) (vii) of the Act. Assessee filed an appeal before the Tribunal but it was dismissed. Fresh assessment was completed in 1973. Excess amount was refunded to the assessee in the same month. The assessee laid a claim for interest u/s 244(1) of the Income Tax Act, 1961 from the date of Appellant Assistant Commissioner's order to the month in which the assessment was finalised pursuant to the remand order and the refund made. The claim was rejected by the Income Tax Officer. Revision filed before the Commissioner was also dismissed. It was held that the respondent having delayed furnishing the particulars called for, was not justified in asking for interest. The assessee filed a Writ Petition before the High Court which was allowed. The revenue was directed to pay to the respondent interest on the amount refunded. Hence this appeal.The appellant challenged the correctness of the view taken by the High Court while submitting that the proviso to Section 240 added by Direct Tax Laws (Amendment) Act, 1987 w.e.f. April 1, 1989, was merely clarificatory of the pre-existing position.For determining claim made u/s 244(1), the question raised for consideration was whether refund of any amount had become due to the assessee as a result of the appellate order in this case. |
Judge | Hon'ble Mr. Justice B.P. Jeevan Reddy |
Neutral Citation | 1995 INSC 30 |
Petitioner | Commissioner Of Income-tax |
Respondent | Chittor Electric Supply Corporation And Anr. |
SCR | [1995] 1 S.C.R. 231 |
Judgement Date | 1995-01-13 |
Case Number | 1413 |
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