JOSEPH KORAH Vs. THE INCOME TAX OFFICER

JUDGEMENT

(1.) The original petition was filed by the petitioner, an agriculturist residing at Kottayam, who was an assessee on the files of the respondent. The prayer in the original petition is for a direction to the respondent to grant interest on interest, on the amounts that were due to the assessee by way of refund pursuant to appellate orders that set aside the demand made on the assessee in the assessment and penalty orders for the assessment year 1976-77. During the pendency of the original petition, the petitioner expired and accordingly his legal heirs were impleaded as additional petitioners 2 to 5 as per order dated 11.12.2007 in I.A.No.16112/2007.

(2.) The brief facts relevant for a disposal of the original petition are as follows:

(3.) The respondent initially, while granting the refund that was due to the petitioner consequent to the appellate orders passed in his favour, chose to grant interest under Section 132B (4) of the Income Tax Act alone. The interest contemplated under Section 244(1A) of the Income Tax Act, on the refund amounts that were due to the petitioner, were not computed and granted to the petitioner. This led the petitioner to prefer a representation before the respondent. When the representation did not yield any response, the petitioner approached this Court, which, by Ext.P4 judgment, directed the respondent to consider the matter and pass orders thereon. By Ext.P5 order dated 19.9.2001, the respondent found the petitioner entitled to interest under Section 244(1A) for the period from 1.6.1979 to 31.1.2001. The grant of interest under Section 132B(1)(4) from 1.7.1976 to 17.5.1979 was also affirmed by the respondent in the said order. The respondent did not, however, find merit in the claim of the petitioner for the grant of interest on interest on the amount of refund that was due to him. It was under these circumstances that the petitioner approached this Court challenging the action of the respondent in not granting interest on interest on the amounts due to him by way of refund.