Law:

Section:

Section 240 [Corresponding to section 66(7) of the Indian Income-tax Act, 1922], read with sections 243 and 297 of the Income-tax Act, 1961 - Refunds - On appeal, etc - Assessment year 1952-53 - Assessment of assessee for relevant assessment year was completed long before 1961 Act came into force - Assessee became entitled to refund as result of of Supreme Court rendered in 1966 - Assessee claimed interest on refund - Whether case of assessee would fall under section 297(2)(i) of 1961 Act and not under section 66(7) of 1922 Act - Held, yes - Whether under 1961 Act there is no provision for payment of interest unless same comes within scope of section 243 - Held, yes - Whether, since assessee's case did not come within scope of section 243, assessee was not entitled to interest on refund - Held, yes FACTS The assessment of the assessee was completed before coming into force of the 1961 Act. Pursuant to decision of the Supreme Court dated 4-10-1966 rendered in case of assessee, the assessee became entitled to refund of certain amount. Consequent upon said , department refunded the tax collected but when the assessee claimed payment of interest on the amount of tax refunded, the Commissioner held that the provisions of the 1922 Act governing payment of interest under section 66(7) for delayed refund were not applicable and hence interest under section 66(7) could not be granted. The High Court dismissed the writ petition of the assessee. On appeal to the Supreme Court: HELD The assessment was completed long before the 1961 Act, came into force. Under these circumstances, the instant case clearly came within the scope of section 297(2)(i) of the 1961 Act, and not under section 66(7) of the 1922 Act. Under the new Act, there is no provision for payment of interest unless the same comes within the scope of section 243 of that Act. It was not the case of the assessee that the facts of the instant case came within the scope of section 243. In the result, the appeal failed and the same was dismissed. Note : The case was decided against the assessee. FACTS OF THE CASE: For the assessment year 1952-53, O. Rm. M. Sp. Sv. Firm was assessed to income-tax. Its claim for…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492