The main legal point established is that under the Income-tax Act, 1961, the entitlement to claim interest on a refund is determined by the provisions of the Act, specifically Section 297(2)(i) and Sec. 243.

Headnote:
Interest - Refund - Income-tax Act, 1961
Fact of the Case:

The only question in this appeal is whether the assessee is entitled to claim interest on the refund due to him based on the decision of the Court.
Finding of the Court:

The Court found that the assessment was completed before the Income-tax Act, 1961 came into force, and therefore, the case falls under Section 297(2)(i) of the Act, which does not provide for payment of interest unless it comes within the scope of Sec. 243.
Issues: The issue was whether the assessee is entitled to claim interest on the refund under the Income-tax Act, 1961.
Ratio Decidendi: The Court applied the provisions of Section 297(2)(i) of the Income-tax Act, 1961 and found that there is no provision for payment of interest unless it comes within the scope of Sec. 243 of the Act.
Final Decision: The appeal was dismissed as the case did not come within the scope of Sec. 243, and no order as to costs was made.

JUDGMENT

HEGDE, J.:— The only question that arises for decision in this appeal is whether the assessee is entitled to claim interest on the refund which became due to him on the strength of the decision of this Court. The assessment in this case was completed long before the Income-tax Act, 1961 came into force. Under these circumstances, this case clearly comes within the scope of Section 297 (2) (i) of the Income-tax Act, 1961 and not under Section 66 (7) of the Indian 910 Income-tax Act, 1922. Under the new Act, there is no provision for payment of interest unless the same comes within the scope of Sec. 243 of that Act. It is not the case of the assessee that the facts of this case come within the scope of Sec. 243.

2. In the result, this appeal fails and the same is dismissed. But in the circumstances of the case, we make no order as to costs.

Appeal dismissed.

For citation: AIR 1976 SC 909

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1973 Supreme(SC) 68

SUPREME COURT OF INDIAK.S. HEGDE, P. JAGANMOHAN REDDY AND H.R. KHANNA, JJ.Panchanathan Chettiar, Appellant Versus Commissioner of Income Tax, Madras, Respondent.Decided on 6-3-1973.

The main legal point established is that under the Income-tax Act, 1961, the entitlement to claim interest on a refund is determined by the provisions of the Act, specifically Section 297(2)(i) and Sec. 243.

SUPREME COURT OF INDIA
K.S. HEGDE, P. JAGANMOHAN REDDY AND H.R. KHANNA, JJ.
Panchanathan Chettiar, Appellant
Versus
Commissioner of Income Tax, Madras, Respondent.
Decided on 6-3-1973.