Law: Income Tax Act, 1961

Section: 143,2(7),4(8),244(lA),244A

Income-tax------Refund---Interest---"Assessee"---"Assessee in default", "assessment", meanings of---Petitioner (Delhi Development Authority) not deducting tax at source from payment of interest made to buyers of flats and paying it to Government---Notice of demand issued and tax recovered---Tribunal finding that petitioner not obliged to deduct tax at source---Amount not refunded and petitioner filing writ petition---During pendency of writ petition I.T.O. refunding amount recovered from petitioner alongwith interest---Petitioner filing petition claiming interest under S.244(lA) for 1988-89 and 244A for 1989-90 and 1990-91---Order under which petitioners liability was determined and recovery made treating petitioner as assessee in default was an order of assessment ---Assessee entitled to interest with reference to SS.244(IA) & 244A for relevant years---Indian Income Tax Act, 1961, Ss.2(7), 4(8), 244(lA) & 244A. For the assessment years 1988-89, 1989-90 and 1990-91, the Income-tax Officer formed an opinion that the petitioner, the Delhi Development Authority, had committed a default in not deducting tax at source amounting to Rs.3,95,97,194 under section 194A of the Income Tax Act, 1961, on the amounts of interest paid by it to buyers of flats. The Income-tax Officer issued a notice of demand for the said amount and effected recovery of tax from the petitioner. The Tribunal; on appeal by the petitioner, held that the petitioner was not obliged to deduct tax- at source and hence the amount recovered from the petitioner was liable to be refunded to it. As the amount was not refunded by the Income-tax Officer as per the Tribunals order, the petitioner filed a writ petition seeking a direction to the Income-tax Officer to refund the amount recovered alongwith interest. During the pendency of the writ petition, the Income-tax Officer passed an order under section 254(1) giving effect to the appellate order of the Tribunal and refunded the sum of Rs:3,95,97,194, alongwith interest of Rs.19,79,859 to the petitioner. Thereafter, a miscellaneous application was filed by the petitioner and it contended that the interest due and payable to the petitioner was not…

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