TMI Blog1994 (6) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax waived the penalty imposed under sections 271(1)(a), 273(a) and 273(c) of the Act for the assessment years 1974-75 and 1975-76. In view of the aforesaid order, the petitioner filed an application before the Income-tax Officer, Surat, praying that the amount as remitted by the Commissioner be refunded with interest under section 244(1A) read with rule 119(a). It was also prayed that the interest amount which the petitioner has paid on some delayed payments be also refunded with interest. The Income-tax Officer refunded the amount without paying any interest as provided under section 244(1A) of the Act. The petitioner therefore preferred revision applications under section 264 of the Act. Those revision applications were rejected by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said sections are sections 240, 241 and 244. Section 237, inter alia, provides that, if any person satisfies the Income-tax Officer that the amount of tax paid by him for any assessment year exceeds the amount with which he is properly chargeable for that year, he shall be entitled to a refund of the excess. Section 238 provides as to who would be entitled to file an application for, refund. Section 239(1), inter alia, provides that every claim for refund shall be made in the prescribed form and verified in the prescribed manner. Sub-section (2) provides the limitation within which an application for refund can be filed. Section 243 provides that in the cases where the Income-tax Officer does not grant refund as provided therein, the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 date on which the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty and such amount or any part thereof having been found in other proceedings under this Act to be in excess of the amount which such assessee is liable to pay as penalty, then the Government is required to pay to such assessee simple interest as specified therein. In this view of the matter, there is no reason to hold that in case where penalty is waived or reduced under section 273A of the Act, the assessee is not entitled to have the said amount with interest as provided under section 244(1A) of the Act. The Allahabad High Court in the case of Raj Kishore Prasad v. ITO [1991] 188 ITR 765, observed that the words "other proceedings under the Act" used under section 240, are wide enough to include proceedings or orders passed under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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