| Case ID |
392b2bed-9eba-4b4c-a510-64cba836fbf3 |
| Body |
View case body. Login to View |
| Case Number |
Not provided |
| Decision Date |
Oct 12, 1983 |
| Hearing Date |
Apr 19, 1983 |
| Decision |
The writ petition was allowed, and the court ruled in favor of the petitioner, Raj Kishore Prasad, granting him interest on the delayed refund of Rs. 73,928 from March 29, 1979, until the actual payment was made on October 12, 1982. The court affirmed that the petitioner was entitled to interest at the rate of 12% per annum as per Section 244 of the Income-tax Act, 1961, which applies to all orders under Section 240. The court held that the words 'other proceedings under the Act' in Section 240 include proceedings under Section 263, thereby supporting the petitioner's claim for interest on the refund amount. The decision emphasized that the claim arose from the Commissioner's decision to drop the proceedings under Section 263, leading to the revival of the original assessment order. |
| Summary |
In the case of Raj Kishore Prasad v. Income Tax Officer, the Allahabad High Court addressed the issue of interest on a tax refund due to the petitioner from the Income-tax Department. The petitioner sought interest on a refund amount of Rs. 73,928, which was due following a series of assessments and appeals under the Income-tax Act, 1961. The court examined Sections 240 and 244 of the Act, which govern refunds and the payment of interest on those refunds. It was determined that the words 'other proceedings under the Act' in Section 240 were broad enough to encompass proceedings initiated under Section 263, allowing the petitioner to claim interest on the refund without needing a separate claim. The court's ruling emphasized the importance of timely refunds and the right of taxpayers to receive interest on delayed payments. The decision underscores the legal principles surrounding tax refunds and the implications for taxpayers seeking timely resolution of their claims. This case is significant for understanding the procedural aspects of tax law in India and serves as a precedent for similar future claims. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
VIRENDRA KUMAR,
S.H.A. RAZA
|
| Lawyers |
K.B. Jindal,
S.C. Misra
|
| Petitioners |
Raj Kishore Prasad
|
| Respondents |
Income Tax Officer
|
| Citations |
1991 SLD 1472 = (1991) 188 ITR 765
|
| Other Citations |
Hira Lal Jagarnath Prasad v. CIT [1969] 74 ITR 732 (All.),
O. Rm. M. Sp. Sv. P. Panchanatham Chettiar v. CIT [1975] 99 ITR 579(SC),
Pandyan Insurance Co. Ltd. v. CIT [1969] 73 ITR 12 (Mad.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
240,
244,
263,
293
|