Self-assessed tax, once paid, is regarded as valid and non-refundable despite subsequent assessment annulments.

1. Whether the 'self - assessed tax' paid by the assessee on 30/03/1989 in respect of the assessment years 1979-80 to 1984-85, on the basis of the returns filed later on 11/10/1989, (i.e., before the issuance of notice under S.148 of the Income Tax Act , but sought to be treated as valid returns filed in response to the above notice) has to be refunded to the assessee, on setting aside the assessment order passed by the assessing authority under S.143(3) of the Act, is the issue involved herein.

2. The sequence of events reveals that the predecessor - in - interest of the petitioner, late Lucy Kochuvareed was a co - owner of the "Vellanikkara and Thattil Rubber Estate", which was acquired by the Government of Kerala on 15/03/1974. Challenging the inadequacy of compensation awarded, the matter was taken up before the Reference Court and also before this Court, whereby the compensation was enhanced, granting interest at the rates stipulated under the amended Land Acquisition Act. The said proceedings became final as per the judgment delivered by this Court on 28/08/1987 in the concerned Land Acquisition Appeal. Total amount awarded by this Court towards interest on the enhanced compensation, for the period from 01/05/1973 to 28/08/1987, was Rs. 96,56,593/-, out of which, the deceased Lucy Kochuvareed obtained 2/3 share, i.e., Rs. 64,37,728/-; which was disbursed to her in three instalments during the year ended on 31/03/1988, 31/03/1989 and 31/03/1990 respectively.

3. On 30/03/1989, the assessee (Lucy Kochuvareed) remitted a sum of Rs. 26,58.000/- as borne by Ext. P1 challan receipt, wherein the assessment year was mentioned as '1989-90'. Subsequently on 07/10/1989, the assessee wrote a letter to the concerned Income Tax Officer, stating that the assessment year shown as '1989-90' was only a mistake, instead of remitting the amounts by separate challans for '11' years and requested the department to give credit to the '11' years commencing from the assessment year 1979-80 to 1989-90, showing the total tax liability as Rs. 26,10,814/- and seeking to refund the balance sum of Rs. 47,186/-. The assessee also requested the department not to charge any interest; since there was total uncertainty regarding the quantum of enhanced compensation payable and also as to the rate of interest (which became final only on passing the final verdict by this Court in 1987) and further since bulk of the amount towards interest was received only during the previous year ended on 31/03/1989. Immediately thereafter, the deceased assessee filed a series of returns of income for all the '11' assessment years as stated above.

4. The returns so filed on 11/10/1989 in respect of the years 1988-89 and 1989-90 were subsequently amended by filing 'revised' returns on 03/01/1990 and returns on 23/03/1990. Exts. P2 and P3 assessment orders were passed in respect of the said assessment years under S.143(3) by the first respondent, fixing the tax liability, interest payable under the different provisions, the amount of tax already paid from the total amount of Rs. 26,58,000/- effected on 30/03/1989 and the balance payable. Even though the first respondent accepted the returns filed on 11/10/1989 in respect of the assessment years 1985-88 onwards, the returns filed in respect of the assessment years 1979-80 to 1984-85 were not accepted as beyond the specified time provided under S.139 of the Income Tax Act .

5. It is the admitted case of the petitioner that the deceased assessee could not file the returns in respect of the assessment years 1979-80 to 1984-85 within the time as specified under S.139 it is stated that the assessing authority had issued notice und