Section 240 of Income Tax Act "Refund on appeal, etc"
240. Where, as a result of any order passed in appeal or
other proceeding under this Act, refund of any amount
becomes due to the assessee, the Assessing Officer shall,
except as otherwise provided in this Act, refund the amount
to the assessee without his having to make any claim in that
behalf:
Provided that where, by the order aforesaid,-
(a) an assessment is set aside or cancelled and an order of
fresh assessment is directed to be made, the refund, if any,
shall become due only on the making of such fresh
assessment;
(b) the assessment is annulled, the refund shall become due
only of the amount, if any, of the tax paid in excess of the
tax chargeable on the total income returned by the assessee.
242. In a claim under this Chapter, it shall not be open to the assessee to question the correctness of any assessment or other matter decided which has become final and conclusive or ask for a review of the same, and the assessee shall not be entitled to any relief on such claim except refund of tax wrongly paid or paid in excess.
243. (1) If the Assessing 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
dividends, within three months from the end of the month in
which the total income is determined under this Act, and
(b) in any other case, within three months from the end of
the month in which the claim for refund is made under this
Chapter,
the Central Government shall pay the assessee simple
interest at fifteen per cent per annum on the amount
directed to be refunded from the date immediately following
the expiry of the period of three months aforesaid to the
date of the order granting the refund.
Explanation.-If the delay in granting the refund within the
period of three 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 Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner whose
decision shall be final.
(3) The provisions of this section shall not apply in
respect of any assessment for the assessment year commencing
on the 1st day of April, 1989 or any subsequent assessment
years.