TaxTMI 
TaxTMI 
2005 (7) TMI 536
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....nted to the appellant from 1-4-1994 the date of the refund i.e., December 31, 1997. 4. The CIT(A) has erred in holding that on the finalisation of the judgment of the Supreme Court dated February 17, 1995 it was incumbent upon the appellant to have returned all the money to the Appropriate Authority immediately and in that event only the appellant could have said that the sum amounting to Rs. 3,50,00,000 paid as tax should be adjusted as payment to the Central Government. 5. The CIT(A) has erred in holding that the amount of Rs. 3,50,00,000 paid by way of advance tax in March 1994 could not be treated as a payment of advance-tax after the decision of the Supreme Court. 6. The CIT(A) has erred in holding that the payment of Rs. 3,50,00,000 made by the appellant ceased to be a payment of tax after the judgment of the Supreme Court and the amount received from the Appropriate Authority ought to have been repaid by the appellant to the Appropriate Authority in spite of the directions to the contrary of the Supreme Court." 2. Thus the main question in this appeal is that whether the assessee is entitled to interest under section 244A on the sum of Rs. 3.5 crores paid by it in March ....
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....tax liability for assessment year 1996-97 - request for. Under instructions from the Executors of the Estate of late Mr. Dinshah J. Gazdar we refer to the return of income filed by them on October 24, 1994 vide receipt No. 004567 and the revised return filed by them on July 18, 1995 vide receipt No. 004867. In the original return filed on October 24, 1994 our clients had returned capital gains on the transfer of Modi Bungalow arising out of the pre-emptive purchase thereof by the Central Government through the Appropriate Authority constituted under Chapter - XXC of the Income-tax Act, 1961. Subsequently, however, on the matter being agitated by the intending purchaser the Supreme Court has held the Acquisition Order under section 269UD(1) of the Income-tax Act, 1961 to be void and consequently the property has re-vested in the hands of the executors. Under the circumstances, the long-term capital gains stood revised to Rs. 1,21,189 and consequentially our clients are entitled to a refund of Rs. 3,48,99,988 plus interest under section 244A and hence we request you to process the return filed by them and grant the resultant refund. Further, it may be noted that the transfer has ....
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....his return was not treated as a valid revised return, rectification under section 154 was carried out on 8-10-1997 cancelling the processing made on 8-1-1997. The sale of the house property was subsequently shown in the return for assessment year 1996-97 filed on 29-6-1996 wherein total income declared was Rs. 15,18,72,835. The assessee had requested to adjust the tax paid and the refund arising for assessment year 1994-95 against self assessment tax for assessment year 1996-97. The said return was processed under section 143(1)(a) on 3-9-1997. Interest under sections 234B and 234C was also charged for the assessment year 1996-97. The Assessing Officer agreed for issuing refund to the assessee under section 237 for the assessment year 1994-95 in respect of excess tax paid in that year but did not accept request of the assessee to grant interest under section 244A on the following grounds : "1. The claim for refund was filed late under section 237 only vide assessee's letter/his CA's letter dated 8-10-1997 and 11-10-1997. There was no claim prior to this. 2. Application of the assessee under section 237 could not have been accepted unless original return for the assessment year 19....
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.... year immediately preceding the assessment year, such interest shall be calculated at the rate of one per cent for every month or part of a month comprised in the period from the 1st day of April of the assessment year to the date on which the refund is granted : Provided that no interest shall be payable if the amount of refund is less than ten per cent of the tax as determined under sub-section (1) of section 143 or on regular assessment; (b)in any other case, such interest shall be calculated at the rate of one per cent for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation--For the purposes of this clause, 'date of payment of tax or penalty' means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 156 is paid in excess of such demand. (2) If the proceedings resulting in the refund are delayed for reasons attributable to the assessee, whether wholly or in part, the period of the delay so attributable to him shall be excluded from the period for which interest is payable,....