COMMISSIONER OF INCOME TAX Vs. GOODYEAR INDIA LIMITED

JUDGEMENT

(1.) AT the instance of the Revenue, the following question has been referred for the opinion of this Court by the Income -tax Appellate Tribunal, New Delhi (in short, the "Tribunal"), under S. 256(1) of the Income -tax Act, 1961, (in short "the Act") :

(2.) THE dispute relates to the asst. year 1967 -68.

(3.) THE stand of the Revenue was that there was no question of granting interest on interest payable under S. 240. With reference to S. 237 it was submitted that the said provision clearly lays down that if any person satisfies the ITO that the amount of tax paid by him for any assessment year exceeds the amount which is properly chargeable under the Act for that year, he shall be entitled to the refund of the excess. In a sense it was submitted that such a refund of the amount paid by the assessee or on its behalf under S. 240 as well as S. 244 are relatable to such amount only and not to any interest payable under S. 214 of the Act. The Tribunal did not accept the Revenue's stand and held that since the amount of Rs. 1,90,499 became refundable as a result of the appellate order which falls under s. 240 of the Act, the assessee is clearly entitled to interest on that amount under S. 244 of the Act, as the ITO failed to grant refund within the stipulated period. It was held that the assessee was entitled to interest only for the period from 1st Nov., 1976, to 21st April, 1977.