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2009 (6) TMI 913 - HC - Income TaxWhether the appeal before the First Appellate Authority was maintainable in law? Whether in the facts and circumstances of the case, the Tribunal was justified in holding that as refund has been issued under Circular No. 285 independently of the Income-tax Act, 1961, the appellant is not entitled for interest on the refunded sum? Held that:- In the present case the appellant was not liable to deduct the tax under the Act. It did so on its own on an erroneous impression and the IDBI clarified the said position. In view of the aforesaid the appellant does not become a deemed assessee and further the refund is not under the Act. Once he is not an assessee as per section 244 of the Act does not gets attracted. Refund that has been directed has been made in pursuance of the circular. The provisions under the Act relate to an assessee. As there was no statutory liability on the part of the appellant to deduct tax, we are of the considered opinion, he is not an assessee. As it is an appeal we cannot deal with the concept of compensation for the delayed payment for simon-pure reason the appeal has to be decided within the parameters of statutory law. Appeal dismissed.
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