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2015 (12) TMI 640 - RAJASTHAN HIGH COURTClaim of interest for delayed Refund - revenue contended that in the case at hand no excess deposit of tax was made by the assessee, but he was held entitled to a refund by the assessing officer only on account of the benefit of set-off. - Held that:- Section 23(2) of the Act of 1954 entitles an assessee to refund of excess tax paid to the Department along with interest at 15 per cent from the date of excess amounts obtain with the Department till date of payment. It is obvious that the section in issue incorporates a principle of equity. Money only has time value, i.e., the value is diluted with time. Interest compensates for dilution of money value. If the contention of the OIC were to be upheld, the assessee's entitlement to refund for reasons of set-off he would be made to bleed with passage of time and be left with no recourse. Such an interpretation would also confer arbitrary powers in the hands of the Department to hold back without limit money due to an assessee as refund. In the circumstances, I am not inclined to narrowly read section 23(2) to exclude payment of interest at the rate prescribed thereunder on excess tax in deposit with the Department arrived at by the assessing office for reason of the assessee's right to set-off and which amount was admittedly found refundable to the assessee. - There is no illegality or perversity in the impugned order passed by the tax Board. - Decided against Revenue.
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