On November 24, 1960, the respondent company was taken over by the Government.
The respondent is a limited companypany in liquidation and is represented by its Liquidators.
The Commissioner opined inter alia that the respondent having delayed furnishing the particulars called for, was number justified in asking for interest from the date of the Appellate Assistant Commissioners order.
The Income Tax Officer then took up the assessment proceeding and called upon the respondent to furnish certain particulars.
The assessee then approached the High Court of Andhra Pradesh by way of a Writ Petition No, 5167 of 1975 which has been allowed as aforestated.
An assessment was originally made on 31.1.1966 and certain tax was determined as payable by the respondent assessee.
It is the respondent who filed an appeal to the Tribunal against the orders of the Appellate Assistant Commissioner and after the dismissal of that appeal, the Income Tax Officer companypleted the assessment on 14th August, 1973 and promptly refunded the excess amount in the same month.
In short, the Appellate Assistant Commissioner directed that the income of the respondent assessee must be determined under Section 12 B of the Indian Income tax Act, 1922 and number under Section 10 2 vii of the said Act.
The respondent laid a claim for interest under Section 244 1 of the Income tax Act, 1961 for the period companymencing on 6th March, 1969 the date of the Appellate Assistant Commissioners order to August, 1973 the month in which the assessment was finalised pursuant to the remand order and the refund made .
The respondent filed an appeal before the Tribunal questioning the companyrectness of the Appellate Assistant Commissioners Order but it was dismissed on 20th September, 1971.
The respondent furnished the particulars finally on 13th April, 1973 and the Income Tax Officer companypleted the assessment on 14th August, 1973.
1995 1 SCR 231 The Judgment of the Court was delivered by P. JEEVAN REDDY, J. This appeal is preferred against the decision of the Andhra Pradesh High Court allowing the writ petition filed by the respondent assessee and directing the Revenue to pay to the respon dent interest on the amount of Rs.
84,562 was found refundable to the respondent.
The appeal preferred by the respondent was allowed by the Appellate Assistant Commissioner on 6th March, 1969.
Original assessment was companypleted on January 31, 1966.
He set aside the assessment and directed the Income Tax Officer to companyplete the assessment afresh in the light of the directions given by him.
The claim was rejected by the Income Tax Officer, against which order the respondent filed a revision before the Commissioner under Section 264 which too was rejected.
The respondent received companypensation therefore which amount was brought to tax by the Revenue.
It was refunded in the same month.
As a result of this assessment, a sum of Rs.
84,562 from September 7, 1969 to August 14,1973 at the rate of 6 per cent per annum under Section 244 1 of the Income tax Act, as prayed for by the respondent.
