Refund vouchers and interest on delayed tax refunds become payable once appellate orders attain finality under the Income-tax Act.

Refund arising from appellate orders that had attained finality had to be issued as a consequential obligation under the Income-tax Act, 1961. Section 240 required the Income-tax Officer to refund amounts due as a result of such orders, and section 244(1) made interest payable where the refund was not granted within the prescribed period. On that basis, the assessee was entitled in law to refund vouchers and admissible interest, with no legal impediment shown against their issue.

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Issues: Whether the assessee was entitled to refund vouchers and interest on refundable amounts arising from appellate orders under the Income-tax Act, 1961.

Analysis: The refund had become due as a result of appellate orders that had attained finality up to the Tribunal. Under section 240, the Income-tax Officer was bound to refund the amount due to the assessee as a consequence of such orders. Under section 244(1), where refund was not granted within the prescribed period, interest became payable on the delayed refund. No effective rebuttal was placed to dispute the entitlement, and there was no legal impediment to issuing the refund vouchers as a consequential measure.

Conclusion: The assessee was held entitled to the refund vouchers and admissible interest in law.

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