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2014 (12) TMI 684 - HC - Income TaxAssessee seeks direction to be made to the revenue to refund the excess amount of tax paid AY 2000-2001, together with interest - Assessment for the AY 2000-2001 completed or not by Revenue - Held that:- Where the return indicated that a refund was due to the assessee on account of advance taxes paid by him, which were not actually payable in so far as the receipt was a capital receipt that was not liable to tax under the Income Tax Act, the AO ought to have dealt with the return and determined whether the refund claimed in the return was actually payable to the assessee or not - no such action appears to have been taken by the AO on the ground that the return itself was never received in the office - in cases covered by Sections 237 to 245, the correctness of an assessment cannot be gone into by the officer concerned while determining the issue as to whether refund is due to the assessee or not - It follows that the procedure can be followed only in cases where there is already an assessment and the assessee approaches the Department for a refund that is due to him in terms of the assessment order. What is to be done with regard to the excess payments made by the assessee, by way of advance tax for the AY in question – Held that:- The payments were in fact made, which is not disputed by the Department, and the payments relate to amounts that were not payable by way of tax – as decided in Guffic Chem P. Ltd. v. CIT - 2011 (3) TMI 6 - Supreme Court] it has been held that the amounts received under a non-compete agreement are not taxable under the Income Tax Act up to the AY 2003-2004 – thus, the revenue is directed to refund the amount of ₹ 1865376/-, that was paid by petitioner in excess for the AY 2000-2001, to the assessee but the revenue would not be liable to pay any interest on the amount – Decided in favour of assessee.
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