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2012 (11) TMI 672 - HC - Income TaxInterest on Delayed Refund - Whether the Tribunal was right in directing the assessing officer to grant refund where the return was filed on 29.03.1996 after one year from the end of the assessment year in violation of the provision of the Section 239(2)(c) of the Act? - Held that:- on a reading of Sections 239, 240 and 243 of the Act, one will know that while Section 239 covers cases of the assessee on self-assessment making a claim for refund within the time limit specified therein, Section 240 provides for refund which is contemplated under the Act without even an application from the assessee, but must emanate from the Officer itself consequent on the order passed on appeal or other proceedings under the Act. Barring these two provisions, there is no other provision, which speaks on refund to the assessee consequent on the assessment. Even in the absence of any such specific provision placing responsibility on the assessee/an Officer to seek or grant refund, Section 243 of the Act contemplates grant of interest in cases, where the assessee is entitled to refund even without making an application in contract to cases where on application, refund to be granted would carry no interest. Thus, on a return filed, where there is determination of income under the Act and the assessment order relates to refund to be granted to the assessee as per Section 243(1)(a) of the Act, refund has to be granted within a period of three months. If the Assessing Officer does not grant the refund, the refund would carry interest as contemplated under Section 243(1)(b) of the Act. - Decided in favor of assessee.
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