Law: Income Tax Ordinance, 1979

Section: 62

Law: Income Tax Ordinance, 2001

Section: 171(1),171(2)(a),171(2)(b),171(2)(c)

[Income Tax Ordinance (XXXI of 1979)]..........Section 62,, Assessment,, Tax Credit,.. Demand,.. Rectification application,, Refund,, Compensation,, Main issue was the delayed payment of refund by the department,.. The appellant computed compensation with reference to date of original order under Section 62 of the R.O. treating this as the date when refund became due,, Due taxes were already paid, deductions were in excess of its liabilities and departmental action of not allowing full credit thereof in orders u/s 62 of the R.O. could not divest itself of its legal right of refund,, The concerned officer computed compensation from the date of the rectification order,, Appeal before the CIR (A-I), who held the appellant to be entitled to compensation from the date of order passed under Section 62 of the R.O., as it was not the case of the department that at the time payment of tax by appellant was disputed and the concerned officer was directed to allow the compensation as the payment of claimed tax credit is not disputed by the department, hence the instant appeals by the department,,. (b) Income Tax Ordinance (XLIX of 2001)...... Sections 171(1), 171(2)(a), 171(2)(b), 171(2)(c),, Issue was regarding the date from which the compensation was to be allowed to the tax-payer,, The Tribunal was of the view that the appellant's case neither fell under clause (a) of sub-Section (2) of Section 171 of the Ordinance nor under clause (b) of sub-Section (2) of Section 171 of the Ordinance, the appellant's case clearly fell under clause (c) of sub-Section (2) of Section 171 of the Ordinance, this fact had not been disputed by the appellant, Clause (c) of sub-Section (2) of Section 171 of the Ordinance clearly indicates that the right to compensation under Section 171 in the present case arises from the date the refund order is made, if there is any delay after passing such an order, therefore, taxpayer was entitled to compensation for a period commencing after and of three months period from the date the refund becomes due i.e. date of refund order, if there is any delay,,. Impugned order of the CIR(A-I) was modified and the concerned taxation officer was directed to…

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