1. Heard finally.
2. Rule D.B.
3. The petitioner, a chartered accountant by profession, was appointed Director-General of Association, New Delhi---Respondent No.4, for a term of five years. The petitioner left the service with effect from November 30, 1988. The petitioner was paid an ex gratia amount of Rs.5,50,000 by his employer. On this amount as also on a few other payments made to the petitioner the employer had deducted an amount of Rs.304,953 and a further amount of Rs.24,548 on account of income-tax by way of TDS and deposited the same with the Reserve Bank of India, New Delhi, vide income-tax deduction certificate (Annexure-A). There is some controversy whether a return of income-tax is filed or not before the appropriate Assessing Officer. The fact remains that the assessm ent has gone barred by time on March 31, 1994, by reference to section 153 of the Income- tax Act. Inasmuch as no demand on account of income-tax has been created against the petitioner, the amount of TDS is liable to be refunded to the petitioner.
4. It is submitted by learned counsel for the petitioner and as has been set out in the petition itself that out of the amount of tax so deducted, an amount of Rs.2.88 lakhs is only due and payable to the petitioner as the remaining amount relates to tax which was legitimately payable by the petitioner. As to these figures as such there is no dispute.
5. The prayer for refund was contested on behalf of the respondents solely on the ground that the respondents are still prepared to make an assessment, whereafter the refund, if any, may be quantified. However, there is no justification behind such defence. Inasmuch as the assessment has already gone barred by time, in our opinion, the amount claimed by the petitioner is liable to be refunded to him.
6. It is directed that the amount of Rs.2.88. Lakhs shall be refunded to the petitioner within a period of one month from today along with interest statutorily payable to the petitioner under section 244A of the Income-tax Act, 1961.
7. The petition be treated as disposed of accordingly.
8. Dasti to both the parties.