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The High Court held that while Section 240 of the Act makes refund consequential to an appellate order and not dependent on a claim, Section 244A(2) specifically addresses delays in proceedings resulting in refund that are attributable to the assessee. The Court interpreted the expression 'proceedings resulting in refund' in Section 244A(2) broadly to include appellate proceedings that lead to a refund. In this case, the assessee declared the transport subsidy as taxable and paid tax, and only raised the issue of its capital nature at the appellate stage. This conduct was held to be responsible for some delay in granting the refund. Therefore, the assessee would be entitled to interest on the refunded amount only from the date of the appellate order (27.10.1994) until the date of payment, not from the date of the original assessment order. The appeal was allowed, reversing the Tribunal's order.
