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 Gift- tax Officer shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in that behalf.
Where an order giving rise to a refund is the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the Gift- tax Officer is of the opinion that the grant of refund is likely to adversely affect the revenue, the Gift- tax Officer may, with the previous approval of the Commissioner withhold the refund till such time as the Commissioner may determine.
Where a refund is due to the assessee in pursuance of an order referred to in sub- section (1) and the Gift- tax Officer does not grant the refund within a period of six months from the date of suck order, the Central Government shall pay to the assessee simple interest at 4[ twelve per cent] per annum on the amount of refund due from the date immediately following the expiry of the period of six months aforesaid to the date on which the refund is granted.
5[ Where the whole or any part of the refund referred to in sub- section (3) is due to an assessee as a result of any amount having been paid by him after the 31st day of March, 1975 , in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub- section (3) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted: Provided that, where the amount so found to be in excess was paid in instalments, such interest shall be payable, on the amount of each such instalment or any part of such instalment, which was in excess, from the date on which such instalment was paid to the date on which the refund is granted: Provided further that no interest under this sub- section shall be payable for a period of one month from the date of the passing of the order in appeal or other proceeding: Provided also that where any interest is payable to an assessee under this sub- section, no interest under sub- section (3) shall be payable to him in respect of the amount so found to be in excess.]
Where a refund is withheld under the provisions of sub- section (2), the Central Government shall pay interest at the aforesaid rate on the amount of refund ultimately determined to be due as a result of the appeal or further proceedings for a period commencing after the expiry of six months from, the date of the order referred to in that sub- section to the date the refund is granted.
Where under any of the provisions of this Act, a refund is found to be due to any person, the Gift- tax Officer, Appellate Assis- tant Commissioner 1[ , Commissioner (Appeals)] or commissioner, as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable 1 Ins. by Act 29 of 1977 , 39 and sch. V (w. e. f. 10. 7. 1978 ).
under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section. CHAP MISCELLANEOUS CHAPTER VIII MISCELLANEOUS