TaxTMI 
TaxTMI 
2001 (11) TMI 6
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....r short "the DDA"), was to construct and allot flats to the buyers within the time stipulated in their agreements. On failure to do so, the D.D.A. was liable to pay interest to the buyers on the amount paid by them, for the period of delay. The D.D.A. defaulted as a consequence whereof it made payment of interest to the buyers. The concerned Income-tax Officer (TDS) found that the D.D.A. failed to deduct income-tax at source on the payment of interest made to the buyers as provided under section 194A of the Income-tax Act, 1961. Accordingly, a demand was raised for the assessment years 1987-88, 1988-89 and 1989-90. an appeal to the Commissioner of Income-tax failed and it was found that the Assessing Officer had rightly levied tax under sec....
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....d any advance tax or the tax paid by the D. D. A. so as to attract section 244A. The High Court negatived the plea of the Income-tax Department. while allowing the writ petition the High Court gave direction to the Income-tax Department to dispose of the claim of the D. D. A. for interest in the light of para. 12 of the judgment and to release the amount of interest to the D. D. A. Paragraph 12 of the judgment is quoted below: "Looking at the provisions of sub-section (3) of section 244 and subsection (4) of section 244A, it is clear that the entitlement of the petitioner to interest for the period covered by the assessment year 1988-89 shall be determined by reference to sub-section (1A) of section 244 and for the period thereafter shall ....
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....the assessee by virtue of an order passed in appeal or any proceedings under the Act. Section 240 of the Income-tax Act deals with refund as a result of any order passed in appeal or proceedings under the Act. It reads as under: "240. Where, as a result of any order passed in appeal or other proceeding under this Act, refund of any amount becomes due to the assessee, the Assessing Officer shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in that behalf: Provided that where, by the order aforesaid,-- (a) an assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh ....
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.... In the case in hand, as indicated earlier, the direction to refund the amount has been made in appellate proceedings before the Tribunal. The amount is to be refunded to the assessee. It cannot be said that the "refundee" will not be an assessee only for the reason that actually no assessment proceeding had taken place. It would be pertinent to refer to the provision contained under section 201 of the Income-tax Act which clearly provides that if the principal officer or the company liable to deduct the income-tax at source fails to do so, he shall be deemed to be assessee in default in respect a the tax. The definition of the word "assessee" as contained under clause (7) of section 2 of the Act reads as under: "2. (7) 'assessee' means a ....