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2011 (1) TMI 1283 - ALLAHABAD HIGH COURTWhether assessing authority and the Tribunal have erred in refusing to refund the excess amount? Held that:- Section 7D provides a lump sum payment in the form of compounding money in lieu of tax payable. Section 2(n) defines "tax" which includes composition money. The applicant applied under the compounding scheme issued by the G.O. dated December 5, 2007 under the turnover slab of ₹ 200 crores. It was open to the assessing authority to accept the said application under the aforesaid slab or to reject it. In the present case the application has been accepted under the turnover slab of ₹ 200 crores. Under the compounding scheme for the turnover slab up to ₹ 200 crores the compounding money payable was ₹ 70 lacs only. Therefore, the assessing authority is not entitled to treat and accept any other amount over and above ₹ 70 lacs as compounding money under the scheme. The assessing authority as well as the Tribunal have erred in treating the entire deposit of ₹ 1 crore as compounding money after accepting the compounding application for the slab below ₹ 200 crores. The assessing authority is only entitled to retain the compounding money which is legally due. Any amount deposited in excess of the compounding money which is not due under the scheme is the excess amount of tax and is liable to be refunded under section 29 of the Act. The assessing authority and the Tribunal have erred in refusing to refund the excess amount. Appeal allowed.
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