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TMI Blog2014 (1) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... e underlying the said section is that, any excess payment of tax paid by the assessee is not only to be refunded but it has to be refunded with interest, if the case of the assessee does not fall under clause (a) or the Explanation to clause (b), the excess tax paid shall be refunded with interest from the date of payment of such tax - the AO is directed to allow interest u/s. 244A from the date of the payment of tax – Decided in favour of Assessee. - I.T.A. No. 155/Mum/2011 - - - Dated:- 12-6-2013 - Shri Vijay Pal Rao, JM And Shri N. K. Billaiya, AM,JJ. For the Appellant : Shri Dharmesh Shah For the Respondent : Shri Javed Akhtar ORDER Per N. K. Billaiya, AM:- This appeal by the assessee is directed against the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of the self assessment tax paid. Accordingly an order u/s. 154 was passed on 24.6.2009 determining a refund of Rs. 45,01,234/-. This refund arose consequent to order giving effect to relief allowed by the Ld. CIT(A) for assessment year 2001-02 and 2004-05 which resulted in revised set off of losses etc. However, while giving the appeal effect and allowing the refund of Rs. 45,01,234/-, the AO did not allow interest u/s. 244A of the Act. 4.1. The assessee once again filed application u/s. 154 of the Act requesting for payment of interest u/s. 244A. The request of the assessee was declined by the AO who was of the firm belief that interest of refund would be allowed out of any tax paid u/s. 115WJ or collected u/s. 206C or paid by way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- Tax - Rs. 37,75,402/- Surcharge - Rs. 3,77,540/- Education cess - Rs. 83,058/- Int-u/s. 234 - Rs. 5,00,000/- Total Rs.47,36,000/- 7. The Ld. Counsel further submitted that the assessee is entitled for interest. To substantiate his claim, the assessee relied upon the decision of the Hon'ble Madras High Court in the case of CIT Vs Cholamandalam Investment Finance Co. Ltd. 294 ITR 438. The assessee further relied upon the decision of the Hon'ble Karnataka High Court in the case of CIT Vs Vijaya Bank 338 ITR 489. 8. Per contra, the Ld. Departmental Representative supported the findings of the lower authorities. 9. We have considered the rival s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the tax liability, i.e., the passing of the assessment order, on which date, the tax paid is adjusted towards the tax liability. This problem did confront the Department. Therefore, they have issued a Circular No. 549, dated October 31, 1989. After referring to the salient features of the said section in detail at paragraph 11.3, it is stated as under (See [1990] 182 ITR (St.) 1, 48) : "These provisions, apart from being complicated, left certain gaps for which interest was not paid by the Department to the assessee for money remaining with the Government. To remove this inequity, as also to simplify the provisions in this regard, the Amending Act, 1987, has inserted a new section 244A in the Income-tax Act, applicable from the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under section 244A. In the absence of an express proviso as contained in clause (a), it cannot be said that the interest is payable from the 1st day of April of the assessment year. At the same time, as the said payment of tax was not made in pursuance of a notice of demand issued under section 156, Explanation to clause (b) of section 244A has no application. In such cases, as the opening words of clause (b) specifically referred to "as in any other case", the interest is payable from the dates of payment of the tax. As clause (b) expressly provides in any other case the payment of tax subsequent to the first day of April of the assessment year, either before or along with filing of the return would squarely fall under clause (b) and, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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