2000 (11) TMI 1236

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....income of ₹ 3,53,190. Tax payable on the declared income works out to ₹ 2,03,084. However, tax collected by the Department in the form of TDS was ₹ 5,45,555. Assessee-company filed its return on 29th Dec., 1993, i.e., before the due date to file return under s. 139(1) to claim refund of tax. The return was processed under s. 143(1)(a) of the Act wherein the income returned by the assessee was accepted. The intimation is dt. 29th March, 1994, wherein the interest payable on the refund was calculated @ 12 per cent on ₹ 3,42,471 for 12 months only i.e., from 1st April, 1993, to 29th March, 1994. The intimation under s. 143(1)(a) and the refund order dt. 13th Jan., 1995, were however served on the assessee only on 31st J....

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....able by the Government where the refund is not granted within three months from the date on which the total income is determined and the interest where payable is to be calculated at the specified rate, from the date immediately following the expiry of the three months aforesaid to the date of the order granting the refund. From this, it is clear that the date of the order granting the refund is the date of the refund voucher itself. The view stated to have been taken by some ITOs, that the date of the assessment order is to be taken as the 'date of order the granting the refund' is not correct. Thus, in cases where interest is payable by the Central Government to assessee under s. 243 of the Act, such interest is to be calculated u....

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....under s. 255(2B) of the Act inasmuch as the assessee had to incur expenditure on the cost of litigation upto the date of Tribunal. In this regard, he relied upon the judgment in Bagri Foundation vs. Chief CIT & Ors. (2000) 158 CTR (Del) 679: (1999) 235 ITR 99(Del). 6. On the other hand, the learned Departmental Representative strongly relied upon the orders of the Tax authorities. 7. We have carefully considered the rival submissions and perused the record. In our view, the plea of the assessee deserves favourable consideration. In several cases, where a refund has to be granted to the assessee, the Revenue officials used to take longer time in clearing such refunds resulting in considerable hardship to the assessee and with a view to exp....