The judgment of the court was delivered by
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, come
into force. Under the circumstances, this case clearly comes within the scope of
section 297(2)(i) of these Income-tax Act, 1961, and not under section 66(7) of
the Indian Income-tax Act, 1922. Under the new Act, there is no provision for
payment of interest unless the same comes within the scope of section 243 of
that Act. It is not the case of the assessee that the facts of this case come
within the scope of section 243.
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
