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five. The liability to pay revenue tax isn't going to rely upon the evaluation remaining designed but arises as soon as the Finance Act prescribes the rate or fees for payment of profits tax and Posting 265 on the Constitution of India is not violated. 6. When the evaluating authority cannot make an evaluation, it quantities to considered acceptance from the return of money. The assessee cannot be put in a far more disadvantageous posture and when it's paid extra tax, it may converse the fact towards the Examining Officer who may perhaps grant him a refund. Therefore, for instance exactly where the assessee has wrongly compensated tax while misinterpreting an exemption provision or pays surplus tax Through considerable caution, these amounts are liable for being refunded.

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Or has the limitation less than Portion 263 to expire right before any refund is granted? Have a case where you can find Many crores at stake or even the Examining Officer has for any explanation granted substantial quantities of refund by way of inadvertence. It appears possible that assessee’s be required to wait till limitation under Part 263 has elapsed for The key reason why the Revenue has no treatment of attractiveness and in many cases if not has no alternative cure. It'll be seriously prejudicial on the passions on the Revenue In case Case Study Solution the refunds are granted before the expiry of your limitation period of time presented under Area 263(2) in the Act.

6. In the case of the applicant who's got built financial investment in 8% Price savings (Taxable) Bonds, 2003 issued by Govt of India deciding on plan of cumulative curiosity on maturity but has accounted interest attained on mercantile foundation and also the middleman lender at the time of maturity has deducted tax at resource on the complete level of interest compensated without apportioning the accrued fascination/TDS, in excess of different money several years associated, the closing date of six yrs for making these kinds of refund statements won't be relevant.

The Punjab and Haryana Superior Courtroom in Marigold Engineers vs. UOI has held the quantities paid underneath protest remaining surplus tax is liable being refunded to your assessee considering the fact that precisely what is not eligible to become refunded under the plan is just tax compensated pursuant towards the declaration submitted which can be ‘thanks’ beneath the scheme.

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On the Preliminary phase, any tax compensated in excessive of tax legal responsibility for a particular evaluation 12 months might be refundable if an application is created in the way provided in Portion 239.

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The Supreme Courtroom on attraction held that the amount of refund need to be ‘thanks’ for curiosity for being granted and obviously pursuant to your Appellate Commissioner’s get no refund was due. Which the Assessing Officer had continue to to compute the refund owing. That the evaluation was even now pending and had not been concluded in light-weight of The truth that a fresh assessment were directed being designed. Consequently, taking into account proviso (a) to Area 240, no quantity was as a result of assessee on the date in the Appellate Commissioner’s get and consequentially, no fascination could possibly Recommended Site be granted on the assessee.