2003 (1) TMI 11

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.... Currency Non-Resident Account (FCNR)/SDR account in the Indian Overseas Bank, Tolstoy Marg, New Delhi, and had deposited in the same year a total amount of US $ 1,35,405. In September, 1985, the Income-tax Officer sought to provisionally attach this account under the provisions of section 281B of the Income-tax Act, 1961, and called upon the appellant to file his return. The appellant filed a "nil" return which was not accepted by the Income-tax Officer. The assessment order was passed on September 10, 1985, assessing the appellant's income at Rs. 10,28,928. The tax was levied thereon and penalty imposed and criminal proceedings initiated. The appellant's appeal was dismissed by the Commissioner. The Income-tax Officer then withdrew the wh....

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....appellant amended his writ petition and prayed for "(a) restoration of his Non-Resident Indian Account in foreign currency with the Indian Overseas Bank which after attachment by the second respondent had been withdrawn on January 11, 1986, and June 12, 1986, and (b) for quashing all orders under section 241 of the Act and the assessment order for the assessment year 1988-89 creating a demand of tax and all other orders of levying penalty, etc., for the assessment year 1988-89". In this background the writ petition was allowed by the order dated May 21, 1993. It is not necessary to consider the reason why the High Court allowed the writ petition as the Revenue's special leave petition seeking to impugn the order dated May 21, 1993, has al....

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....at it was not directing refund in terms of or under any provisions of the Income-tax Act but was directing restitution of the status quo ante. According to the respondent, the appellant became entitled to the refund because of the Tribunal's order under section 240 of the Act. The appellant became entitled to interest after the rejection of the application under section 256(2) by the High Court under the provisions of section 244(1) of the Act which provides for payment of simple interest on refund at the rate of 15 per cent. per annum. According to the respondent, the appellant was therefore entitled only to interest at the rate of 15 per cent. per annum and nothing more. In this case, we are not concerned with whether the appellant was ....

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....dismissal of the application under section 256(2) of the Act. The High Court in its order dated May 21, 1993, has considered the prayer of the appellant seeking restoration and construed the prayer to mean that the appellant wanted orders enabling him "to have his non-resident Indian account in foreign currency with interest accrued thereon in foreign currency restored ante". Therefore, when the court allowed the petition directing restoration, it had acceded to the prayers in terms made and as understood by the court. Besides, a direction to "deposit back" in a FCNR account, in a particular bank is certainly not a directive under section 244(1) or (2) or section 244A of the Act. Were it such a direction there would also have been no occasi....