RAJ KISHORE PRASAD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner has filed this writ petition claiming different amounts by way of refund and interest besides costs. In the course of his arguments, learned counsel for the petitioner pressed only the claim of Rs. 28,225 by way of interest on delayed refund of Rs. 73,928 which had fallen due to the petitioner on March 29, 1979, while the actual payment of this amount was made on October 12, 1982. This interest is claimed at 12 per cent. per annum besides the costs of the writ petition.

(2.) THE petitioner was assessed to income -tax for the assessment year 1974 -75 on October 5, 1974, by the Income -tax Officer, 'A' Ward, Circle II, Lucknow. Thereafter, a notice was issued under Section 154 of the Income -tax Act, 1961 (for short 'the Act'), to the assessee regarding the excess rebate allowed to him. It appears that the assessee had no objection to the proposed rectification ; hence the mistake was rectified by the Income -tax Officer under Section 154 of the Act on February 12, 1975. Thereafter, the Commissioner of Income -tax took up the matter suo motu and passed an order under Section 263(1) of the Act on the ground that the Income -tax Officer had wrongly omitted to charge interest from the petitioner under Section 217(1A). The Commissioner of Income -tax passed the order under Section 263(1) of the Act on September 30, 1976, setting aside the aforesaid assessment order which was passed by

(3.) AGAINST the order of the Income -tax Commissioner dated September 30, 1976, under Section 263 of the Act (referred to above), the petitioner went up in appeal before the Income -tax Appellate Tribunal which, under its order dated October 13, 1978, set aside the Income -tax Commissioner's order dated September 30, 1976. Under the Appellate Tribunal's order, the proceedings were remanded to the Income -tax Commissioner. Thereafter, the petitioner made a representation dated March 19, 1979, before the Commissioner, whereupon the Commissioner passed the following order on March 29, 1979 : 'Please refer to your counsel's letter dated March 19, 1979. The proceedings initiated under Section 263 of the Income -tax Act for the assessment year 1974 -75 have been dropped.'