TRUSTEES OF H E H THE NIZAMS MISCELLANEOUS TRUST Vs. COMMISSIONER OF WEALTH TAX CENTRAL RANGE BANGALORE

JUDGEMENT

(1.) These writ petitions are filed by the Trustees of H.E.H. the Nizams Miscellaneous Trust, Hyderabad, seeking a writ of certiorari to quash the order of the CWT, Karnataka (Central) Bangalore, in W.T. As. Nos. 2 to 18/WT/25-CIT-C dated 31/05/1979 and to direct the WTO, Central Circle-III, Hyderabad, 2nd respondent herein to pay the petitioner interest under s. 34A of the W.T. Act, 1957 (hereinafter referred to as "the Act") at the rates in force until refund is made or the amount is adjusted towards tax due, if any.

(2.) The two principal questions that arise for consideration are : "1. Whether the liability to pay interest on the amount of tax ordered to be refunded is absolute under section 34A(3) of the Act after the expiry of the period of six months from the date of the order ? and 2. Whether interest becomes payable after six months of the order of the Appellate Tribunal or on the quantification of the amount to be refunded by the WTO pursuant to the order of the Appellant Tribunal ? and lastly 3. Whether any enquiry was necessary consequent upon the Appellate Tribunals order for the purpose of quantifying the amount of payment and whether that enquiry must necessarily be completed within a period of six months and whether irrespective of who was responsible for the delay, the liability to pay interest arises after a lapse of six months.

(3.) In order to appreciate the contentions giving rise to the above questions of law, the few facts necessary, which are practically common to all the writ petitions, may briefly be stated. The trustees of the petitioner-trust filed wealth-tax returns for the assessment years 1957-58 to 1972-73. The assessments were completed and the tax due was recovered from the Petitioner. These assessment orders were the subject-matter of appeals and ultimately the Appellate Tribunal by its order dated 31/03/1974 in W.T. As Nos. 1525 to 1527 of 1965-66 in regard to the assessment years 1957-58 to 1959-60, directed as under :