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2018 (9) TMI 80 - HC - Income TaxSeeing refund together with interest under Section 244 - whether the petitioner is entitled to full refund of tax already paid, since the assessment was annulled later by the competent Authority and such annulment has become final and conclusive - Held that:- Apex Court in the case of Commissioner of Income Tax vs Shelly Products & Another [2003 (5) TMI 4 - SUPREME COURT] has categorically observed that the liability to pay income tax chargeable under Section 4(1) of the Act, does not depend upon the assessment being made and that the liability to pay the tax arises, as soon as the Finance Act prescribes the rate or rates for any assessment year. If the Assessing Authority cannot make a fresh assessment after the earlier assessment made was set aside or nullified, it amounts to deemed acceptance of the return of income furnished by the assessee. Going by the above law laid down by the Apex Court and applying the same to the present facts and circumstances, in pursuant to the nullifying of the assessment, a deemed acceptance of the return of income furnished by the assessee stands and holds good and consequently, any tax paid either along with the return or later under any circumstances would certainly fall under the purview of "tax chargeable on the total income returned by the assessee" as referred to in Proviso (b) of Section 240 of the said Act. Consequently, whatever the amount paid by the assessee in cases of the tax chargeable on the total income more than returned by the assessee alone could be refunded and not a full refund. This is what happened in the present case. Admittedly, the Revenue has refunded a sum of ₹ 6,46,454/-, being the excess tax paid by the assessee. Hence, the tax paid by the Assessee on the admitted return filed by him cannot be refunded and thus, the respondents are justified in rejecting such claim. - Decided against assessee
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