BABU RAM CHANDRA BHAN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner is claiming interest for two periods in this writ petition, namely, June 28, 1967, to September 8, 1972 and again from April 25, 1974 to October 6, 1978. A few facts may be stated to appreciate the aforesaid claim.

(2.) THE petitioner was a partner in a partnership firm. Assessments were made for the assessment years 1957-58 and 1958-59. Certain penalties were also levied for those assessment years. THE petitioner paid a major portion of the penalties imposed and questioned the levy of penalties. By an order dated March 28, 1967, the Tribunal set aside the penalties with the result that the penalties paid become refundable.

(3.) ACCORDING to this provision, the petitioner is clearly entitled to interest with effect from July 1, 1967. Admittedly, interest has been paid to him from September 8, 1972, to April 25, 1974. Therefore, the petitioner shall be paid interest at the aforesaid rate on the amount refundable to him for the period July 1, 1967 to September 7, 1972.