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1973 (5) TMI 11 - HC - Income TaxAssessment order for the year 1959-60 was set aside by the Tribunal on 17th of May, 1962. The Income-tax Officer took six years to pass a fresh order ultimately holding that the tax had wrongly been collected from the petitioners. We find no rational reason why the petitioners should be deprived of the interest for the period of six years during which the Income-tax Officer kept the proceedings pending. If he wanted to withhold the refund, he should have passed an order under section 241 and in that event the petitioners would not have been deprived of the interest. If we accepted the stand taken by the department, an assessee can be deprived of the refund for an indefinite period at the will of the Income-tax Officer, because there is no period or limitation prescribed for passing a fresh assessment order on remand. We find no reason in law or in equity to accept such a preposterous proposition - We, accordingly, allow this petition
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