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This can be for The explanation that refund of tax and desire thereon is payable only when tax is paid out in excess of what is chargeable beneath the Act for a certain evaluation 12 months. Hence, if admittedly there was tax payable to the evaluation yr 1994-1995 (from the Stock Keeping Corporation case) pursuant to a need through the assessing officer(which was set off towards refund for 1995-1996), it really is inconceivable how the self-evaluation tax for that year(1994-1995) is often refunded, that much too with curiosity.
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On assessee’s ask for, the Division granted refund of the quantity deducted. The courtroom held that on such refund desire will not be out there less than area 244A.
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(ii) If the tax demands sought to become set off against refunds due are stayed by any authority, tribunal, or court, the adjustment is plainly impermissible. This is often for The key reason why that no tax is remaining payable or is needed being paid out.
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Only the tax because of is payable and unless these types of tax is because of, the Department can't retain any such surplus quantities. The quantity of tax may very well be decided with reference to the amount as pointed out in the certification issued under the Act, which During this case was decreased than the amount because of and paid underneath the plan. Thus, the surplus was liable to become refunded alongwith curiosity.
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Portion 237 in the Money Tax Act, 1961 deals with Earnings Tax refund of excessive tax paid from the assessee. If anyone or assessee satisfies the examining officer that the quantity of the tax paid by him or compensated by any person on his behalf throughout any prior assessment yr exceeds the amount with which He's correctly chargeable beneath the act for that calendar year, he is entitled to refund of surplus amount of money paid.