Dipak Kumar Sen, J. - (1.) Bowater Corporation Limited, the assessee, was assessed to income-tax for the assessment year 1973-74. By the assessment, a further demand was raised by the Income-tax Officer on March 25, 1976, on which the assessee paid a sum of Rs. 25,39,575 on May 11, 1976.
(2.) On appeal by the assessee against the said assessment, the Appellate Assistant Commissioner on October 15, 1976, directed a refund of Rs. 23,85,295 to the assessee. The refund was withheld under Section 241 of the Income-tax Act, 1961. The matter was finally disposed of by the Tribunal on an appeal of the Revenue on May 26, 1977. A refund of Rs. 22,01,545 has finally been directed to be made to the assessee.
(3.) The Income-tax Officer awarded interest under Section 244(1A) while allowing the refund by his order passed under Section 244. Later, the Income-tax Officer sought to rectify the said order on the ground that excess interest has been granted to the assessee and the mistake was apparent on the face of the record. Proceedings were initiated under Section 154 of the Income-tax Act, 1961. By an order passed on August 18, 1978, it was held that excess interest amounting to Rs. 1,48,150 paid was refundable by the assessee.;