1990 (9) TMI 34

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....nt years 1957-58 and 1958-59. Certain penalties were also levied for those assessment years. The petitioner paid a major portion of the penalties imposed and questioned the levy of penalties. By an order, dated March 28, 1967, the Tribunal set aside the penalties with the result that the penalties paid become refundable. It, however, appears that the Department was not satisfied with the orders of the Tribunal dated March 28, 1967, and they sought for a reference. Ultimately, the reference was rejected on September 8, 1972. On April 25, 1974, two refund vouchers were issued in favour of the petitioner for the amount paid by him plus interest for the period September 8, 1972 to April 25, 1974. But, before the petitioner could encash those....

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....o him from September 8, 1972, to April 25, 1974. Therefore, the petitioner shall be paid interest at the aforesaid rate on the amount refundable to him for the period July 1, 1967 to September 7, 1972. Now, coming to the second period, the question is whether the proceedings which were taken on the basis of the objection/claim filed by the third party (ex-partner) are proceedings under the Act within the meaning of section 241 as it then stood. For the sake of convenience we may read section 241 at this stage : " 241. Power to withhold refund in certain cases. -Where an order giving rise to a refund is the subject-matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the Assessing Offic....