1988 (12) TMI 68

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....owing question of law : "Whether, on the facts and in the circumstances of the case, and having regard to the second proviso to section 244(lA), the Appellate Tribunal was right in law in holding that the order of the Income-tax Officer granting interest under section 18 of the Surtax Act read with section 244(lA) of the Income-tax Act are not prejudicial to the interest of the Revenue and on that ground setting aside the order of the Commissioner of Income-tax ?" The facts of the case are as follows : The assessee (respondent) is assessed under the provisions of the Companies (Profits) Surtax Act, 1964. For the assessment years 1971-72, 1972-73 and 1973-74, the assessee became entitled to refund of tax as result of revision of ass....

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....ithin the term "other proceedings " in section 244(l A) and under the proviso, what is excluded from payment of interest is the one month period and it cannot be construed as to provide for payment of interest Only when the refunds are belated, beyond one month from the date of the order giving rise to the refund. In other words, according to the Tribunal, the assessee would be entitled to interest from the date of the payment of tax to the date of refund and from that period, one month will be deducted. In this view, the Tribunal set aside the order of the Commissioner and restored the order of the Surtax Officer for all the three years. It is as against this, the Revenue has filed these petitions for a reference on the question of law set....