Section 240:
Refund on appeal, etc.
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 1
AssessingOfficer shall, except as
otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in
that behalf:
2
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.
Notes:
1. Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).
2. The proviso added by Act 4 of 1988, s. 95 (w.e.f. 1-4-1989).