Interest on delayed refunds

243. (1) If the Income-tax Officer does not grant the refund,

(a) in any case where the total income of the assessee does not consist solely of income from interest on securities or dividend, within three months from the date on which the total income is determined under this Act, and

(b) in any other case within six months from the date on which the claim for refund is made under this Chapter,

the Central Government shall pay the assessee simple interest at ¹[six] per cent per annum, on the amount, directed to be refunded from the date immediately following the expiry of the period of three months or six months aforesaid, as the case may be, to the date of the order granting the refund.

Explanation.—If the delay in granting the refund within the period of six months aforesaid is attributable to the assessee, whether wholly or in part, the period of the delay attributable to him shall be excluded from the period for which interest is payable.

(2) Where any question arises as to the period to be excluded for the purposes of calculation of interest under the provisions of this section, such question shall be determined by the Commissioner whose decision shall be final.

 

 

[As amended by the Finance Act, 1966]