Refund limitation cannot defeat balance payment after provisional refund, with adjustment against future tax liability and no interest waiver.

Where 90% of a refund had already been granted as provisional refund, the remaining balance could not be denied merely on limitation grounds. The unpaid amount was directed to be released by adjustment against future tax liability, because the taxpayer expressly waived interest and the Revenue accepted that such adjustment would not prejudice its interests. In these circumstances, the balance refund had to be paid, and no interest was payable in view of the waiver.

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Issues: Whether the balance refund remaining after grant of provisional refund could be denied on the ground of limitation, and whether the unpaid amount could be adjusted against future tax liability without awarding interest.

Analysis: The refund had already been granted to the extent of 90% as provisional refund, leaving only the balance amount unpaid. In that situation, the expiry of limitation could not be used to deny the remaining refund. The petitioner also agreed to forego interest if the balance amount was adjusted towards future tax liability, and the Revenue accepted that such adjustment would not prejudice its interests. In these circumstances, the balance refund was required to be released, while no interest was payable in view of the petitioner's express waiver.

Conclusion: The balance refund could not be denied on limitation grounds, and the amount was directed to be refunded by adjustment towards future tax liability without interest.

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