TMI Blog1997 (7) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... flats. It also appears that the Delhi Development Authority was liable to payment of interest to the flat buyers on the amount paid by them, if the flats were not constructed and possession made over to the allottees in accordance with the terms agreed upon between the two. The Delhi Development Authority had to pay interest to the flat buyers for the period of delay in construction and delivery of possession. The Income-tax Officer (TDS) Ward No. 8(6) formed an opinion that there was default on the part of the Delhi Development Authority in not deducting tax at source which was required to be done under section 194A of the Act. A demand of Rs. 3,95,97,194 relevant to the assessment years 1988-89, 1989-90 and 1990-91 was raised, vide order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of in view of the statement made on behalf of the respondent. On August 12, 1996, C.M. No. 7216 of 1996 has been filed on behalf of the petitioner submitting that the interest due and payable to the petitioner was not rightly calculated by the respondent and appropriate direction deserved to be issued to the respondent to calculate interest under section 244(1A) for the assessment year 1988-89 and under section 244A for the assessment years 1989-90 and 1990-91. This application was preceded by demands made by the petitioner to the respondent. The prayer made by the petitioner has been opposed by the respondent. It is submitted that the principal amount together with interest due and payable as per law has already been paid to the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpiry of the period of three months aforesaid to the date on which the refund is granted. (1A) Where the whole or any part of the refund referred to in sub-section (1) is due to the assessee, as a result of any amount having been paid by him after the 31st day of March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the 1st day of April of the assessment year to the date on which the refund is granted : Provided that no interest shall be payable if the amount of refund is less than ten per cent. of the tax as determined under sub-section (1) of section 143 or on regular assessment; (b) in any other case, such interest shall be calculated at the rate of one per cent. for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation.---For the purposes of this clause, 'date of payment of tax or penalty' means the date on and from which the amount of tax or penalty specified in the notice of demand issued und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Their Lordships have quoted with approval from the speech of Lord Simon in Commissioners for General Purposes of Income-tax for the City of London v. Gibbs [1942] AC 402, 406 pointing out that the word " assessment " is used in the English income-tax code in more than one sense---one meaning is the fixing of the sum taken to represent the actual profit, and the other, the actual sum in tax which the taxpayer is liable to pay. In CIT v. Khemchand Ramdas [1938] 6 ITR 414 (PC), their Lordships of the Privy Council have held that the word " assessment " is used in the Income-tax Acts as meaning sometimes the computation of income, sometimes the determination of the amount of tax payable, and sometimes the procedure laid down in the Act for imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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