92[Interest on excess refund.
234D. (1) Subject to the
other provisions of this Act, where any refund is granted to the assessee under
sub-section (1) of section 143, and—
(a) no refund is due on regular assessment; or
(b) the amount refunded under sub-section (1) of section 143 exceeds the amount refundable on regular
assessment,
the assessee shall be liable to pay simple interest at
the rate of 93[one-half] per cent on the
whole or the excess amount so refunded, for every month or part of a month
comprised in the period from the date of grant of refund to the date of such
regular assessment.
(2) Where, as a result of an order under section 154 or section 155
or section 250 or section
254 or section 260
or section 262 or section
263 or section 264 or an order of the
Settlement Commission under sub-section (4) of section
245D, the amount of refund granted under sub-section (1) of section
143 is held to be correctly allowed, either in whole or in part, as
the case may be, then, the interest chargeable, if any, under sub-section (1)
shall be reduced accordingly.
Explanation.—Where, in relation
to an assessment year, an assessment is made for the first time under section 147 or section 153A,
the assessment so made shall be regarded as a regular assessment for the
purposes of this section.]
