Payment of interest

Payment of interest.- Where any amount refundable to any person under an order made under any provision of this Act is not refunded to him within ninety days,-

1. (a) of the date of such order, if that order is made by the refunding authority, or
2. (b) of the date or receipt of such order by the refunding authority, if that order is made by an authority other than the refunding authority, the refunding authority shall pay such person simple interest at the rate of twelve percent per annum on the said amount from the date immediately following the expiry of the said ninety days to the day of the refund : Provided that the interest shall be calculated on the balance of the amount remaining after adjusting out of refundable amount any tax, penalty or other amount due under this Act, for any year by the person on the date from which such interest is calculable. Explanation.- If the delay in granting the refund within the aforesaid period of ninety days is attributable to the person to whom the refund is payable, the period of such delay shall be excluded for the purpose of calculation of interest.