DARIYAVE SINGH KARNAWAT Vs. CHIEF CIT & ORS

JUDGEMENT

(1.) The petitioner, an income tax assessee, has prayed in this writ petition that excess TDS (Tax Deducted at Source) by LIC on maturity of policies paid to him, in his case amounting to Rs. 19,083 for the assessment year 1994-95 was initially not refunded as per return of income filed by him as there was delay of four days only in filing such return income, which was due to be filed on or before 31-3-1996, under section 139(4) of the Act, but the same was filed on 4-41996. Learned Chief Commissioner of the Income Tax, Udaipur, vide order Annexure 4 dated 14-112005 condoning the said delay of four days, in his power delegated upon it under section 119(2) (b) of the Act, condoned the said delay, and directed the assessing authority to admit the claim of refund of Rs. 19,083 after due verification of TDS certificates and evidence of other tax payments, if any. However, the said authority, Chief Commissioner of Income Tax, added the impugned part in the said order that 'no interest will be paid on the belated refund'.

(2.) Being aggrieved by the said impugned part, the petitioner-assessee tried his luck by filing representation before the Central Board of Direct Taxes, New Delhi also vide Annexure-5 dated 29-7-2006, however, the said request was turned-down vide Annexure-8 dated 25-10-2006. The petitioner-assessee thereafter approached this Court by filing present writ petition on 24-7-2007.

(3.) Learned counsel for the petitioner, Mr. Deelip Kawadia, submitted that the petitioner-assessee was not at fault at all and the minor delay in filing return of income itself was condoned by the Chief Commissioner of Income Tax, Udaipur and once such return of income was treated as regularly filed with such condonation of delay, there was no justifiable reason to deny interest on such refund of excess TDS in his case. He drew the attention of the Court towards sections 244 and 244A of the Act, which are reproduced herein below for ready reference.