PRAYAG UDYOG P. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner is a company duly incorporated under the Companies Act, 1956. It has been pleaded that for previous years relevant to the assessment years 1992 -93, 1993 -94 and 1994 -1995, the petitioner deposited the income tax in pursuance of the assessment orders passed by the Assessing Officer, under the provisions of Income Tax Act, 1961. The assessment orders were subject matter of challenge by the petitioner first before First Appellate Authority and thereafter before the Income Tax Appellate Tribunal. The petitioner was granted marginal relief by the First Appellate Authority and in the second appeals by the Tribunal as well. The petitioner's case is that the income tax deposited by it, in pursuance of the demand notices issued under section 156 of the Act by the Assessing Officer, the petitioner is entitled to get refund of the excess tax deposited for all these three assessment years. The orders of the Tribunal for the assessment years 1992 -93, 1993 -1994 and 1994 -95 all have become final and the following amounts of refund have become due: - <IMG>JUDGEMENT_866_TLALL0_2012 .jpg</IMG> The petitioner has been pursuing its refund claim for the last five to six years but without any success. In the petition the following reliefs have been claimed: -

(2.) DURING the course of the argument, the learned counsel for the petitioner handed over a calculation chart which is reproduced below: - <IMG>JUDGEMENT_866_TLALL0_20121 .jpg</IMG> At the outset, we may add that the dispute in the present writ petition relates to the period subsequent to 31st of March, 1989. Section 244A is operative with regard to the payment of interest on refund for the assessment year 1989 -90 and thereafter. The provisions relating to refund and interest of the Income Tax Act, were drastically amended by the Direct Tax Laws Amendment Act, 1989 w.e.f. 1st of April, 1989. Provisions relating to refund and interest are contained in Chapter XIX of the Income Tax Act. Section 237 provides that if the Assessing Officer is satisfied with the liability of tax paid by any persons or by any other person on behalf of the assessee for any Assessment Year exceeds the amount with which he is properly chargeable under the Act for that year, the said person shall be entitled to a refund of the excess amount. Section 240 deals with the refund of the tax as result of an appellate order. Sections 243 and 244 deals with interest on delayed refund and interest on refund were no claim application needed. But these provisions shall not apply in respect of any assessment for the assessment year commencing on the 1st April, 1989 or any subsequent assessment years.

(3.) TO overcome the difficulty faced by the revenue, a Validation Act 1964 was passed with restrospective effect. Section 3, without the proviso, may be read as a whole: