Time-Barred Order Giving Effect quashed; refund granted with interest and additional delayed refund interest payable.

An order giving effect passed after expiry of the statutory period under Section 153(5) is time-barred and is quashed; the assessing officer becomes functus officio and the returned income stands final. Amounts recovered and adjusted against a non existing demand for the relevant assessment year are refundable to the assessee, and interest under Section 244A(1)(b) is payable from date of tax payment to date of credit. Where refund was delayed beyond the expiry of the period for passing consequential orders, additional interest under Section 244A(1A) is also payable for the intervening period.

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Issues: (i) Whether the order giving effect (OGE) dated 23.08.2023 passed by the Revenue in respect of AY 2012-13 is liable to be quashed as time-barred; (ii) Whether the petitioner is entitled to refund of Rs. 4,73,27,390/- adjusted against a non-existing demand for AY 2012-13; (iii) Whether the petitioner is entitled to interest under Section 244A(1)(b) for Rs. 1,57,62,280/-; (iv) Whether the petitioner is entitled to additional interest under Section 244A(1A) for Rs. 80,45,656/-.

Issue (i): Whether the OGE dated 23.08.2023 is time-barred and therefore liable to be quashed.

Analysis: The Tribunal's order was received on 09.08.2017. Section 153(5) prescribes the time within which an assessing officer is to pass an order giving effect. Calculations based on the statutory period and alternative application of Section 153(3) show the prescribed period for passing the OGE had lapsed. Authorities and established principles on limitation, functus officio, and merger support that an assessing officer lacks jurisdiction to pass an OGE after the statutory period has expired.

Conclusion: The OGE dated 23.08.2023 is quashed as time-barred; outcome in favour of the assessee.

Issue (ii): Whether the petitioner is entitled to refund of Rs. 4,73,27,390/- which was adjusted against a non-existing demand.

Analysis: Records (Forms 26AS and ITBA portal screenshots) show refunds for other assessment years were adjusted against a non-existing demand for AY 2012-13. Statutory provisions (Sections 237 and 240) and precedent establish entitlement to refund where tax recovered exceeds tax on returned income once an OGE is invalid for being time-barred.

Conclusion: The petitioner is entitled to refund of Rs. 4,73,27,390/-; conclusion in favour of the assessee.

Issue (iii): Whether the petitioner is entitled to interest under Section 244A(1)(b) for Rs. 1,57,62,280/-.

Analysis: Section 244A(1)(b) contemplates payment of interest on refunds from the date of payment of tax to the date of credit of refund. Authorities and administrative instructions clarify that interest accrues up to the date of credit to the assessee's account and that unpaid interest included in principal refunded attracts further interest.

Conclusion: The petitioner is entitled to interest under Section 244A(1)(b) in the sum adjudicated; conclusion in favour of the assessee.

Issue (iv): Whether the petitioner is entitled to additional interest under Section 244A(1A) for Rs. 80,45,656/- from expiry of the time under Section 153(5) to date of grant of refund.

Analysis: Section 244A(1A) provides additional interest where refund is delayed beyond the statutory period for passing consequential orders. Given the OGE was time-barred and refund was delayed beyond the expiry of the period under Section 153(5), additional interest at the statutory rate is payable for the intervening period until refund is credited.

Conclusion: The petitioner is entitled to additional interest under Section 244A(1A); conclusion in favour of the assessee.

Final Conclusion: The cumulative effect is that the OGE is quashed, the assessed refunds are to be credited to the petitioner and statutory interest under Sections 244A(1)(b) and 244A(1A) is payable; overall relief granted in favour of the assessee.

Ratio Decidendi: Failure by the assessing authority to pass an order giving effect within the statutory period prescribed under Section 153(5) (or applicable provision) renders the assessing authority functus officio, makes the returned income final, and entitles the assessee to refund of amounts recovered in excess of tax on returned income together with interest under Sections 244A(1)(b) and 244A(1A).

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