Belated refund claims cannot carry interest where the filing is beyond limitation and the governing instruction excludes delayed claim interest.

A belated refund claim filed after the time prescribed under Section 139(5) and beyond six years from the end of the relevant assessment year could not support a direction for interest under the governing administrative instruction, which excluded interest on delayed claims. The refund claim itself remained to be considered in accordance with law, but the direction to consider or grant applicable interest was unsustainable on those facts and was set aside.

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Issues: Whether the direction to consider the assessee's refund claim with applicable interest was justified when the revised return and condonation request were filed beyond the period prescribed under the Income-tax Act, 1961 and the applicable administrative instruction.

Analysis: The revised return was not filed within the time contemplated by Section 139(5) of the Income-tax Act, 1961. The application seeking condonation of delay and refund was also filed beyond six years from the end of the relevant assessment year, contrary to the governing instruction on belated refund claims. The refund claim, though asserted to be genuine, fell within the category of belated claims for which the instruction excluded interest. The direction to grant or consider interest could not be sustained on the facts.

Conclusion: The direction to consider the refund claim with applicable interest was set aside, while the direction to consider the refund claim in accordance with law was maintained.

Final Conclusion: The appeal succeeded only to the extent of deleting the direction for interest on the belated refund claim, and the refund claim itself was left to be considered in accordance with law.

Ratio Decidendi: A belated refund claim filed beyond the prescribed limitation cannot carry a direction for interest where the governing instruction excludes interest on delayed claims.

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