1 (1) If the 2 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 3 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 4 5 Principal Chief Commissioner or Chief Commissioner or 6 Principal Commissioner or Commissioner whose decision shall be final.
7 (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.
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1. Subs. by Act 42 of 1970, s. 42, for sub-section (1) (w.e.f. 1-4-1971).
2. Subs. by Act 4 of 1988, s. 2, for "Income-tax" (w.e.f. 1-4-1988).
3. Subs. by Act 67 of 1984, s. 24, for "twelve per cent." (w.e.f. 1-10-1984).
4. Subs. by Act 4 of 1988, s. 2 for "Commissioner" (w.e.f. 1-4-1988).
5. Subs. by Act 25 of 2014, s. 4 for "Chief Commissioner" (w.e.f. 1-6-2013).
6. Subs. by s. 4, ibid., for "Commissioner" (w.e.f. 1-6-2013).
7. Ins. by Act 4 of 1988, s. 96, (w.e.f. 1-4-1989).
Section 236 Relief to company in respect of dividend paid out of past taxed profits
Section 236a Relief to certain charitable institutions or funds in respect of certain dividends
Section 238 Person entitled to claim refund in certain special cases
Section 239 Form of claim for refund and limitation
Section 240 Refund on appeal, etc
Section 241A Withholding of refund in certain cases
Section 242 Correctness of assessment not to be questioned
Section 243 Interest on delayed refunds
Section 244 Interest on refund where no claim is needed
Section 244A Interest on refunds
Section 245 Set off of refunds against tax remaining payable