19Interest
on delayed refunds.
243. 20[(1) If the 21[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 22[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 23[Chief Commissioner or
Commissioner] whose decision shall be final.
24[(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.]