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TMI Blog2016 (2) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and not as on the date of passing of appellate order and since law on 04-12-2012 was that assessee is entitled to interest on refund arising on account of self assessment tax, CIT(A) erred in not giving interest u/s 244A. 4. Whether for the purpose of deciding whether self assessment tax is a tax covered in Sec. 244A(l)(b) or not, direct judgement of Supreme Court in the case of Cholamandalam Investment & Finance Co. Ltd. [which lay down specific rule that self assessment tax is a tax covered under sec 244A(l)(b)] be followed and judgment of SC in the case of Commissioner of Income-tax, Gujarat v. Gujarat Fluoro Chemicals [2014] 42 taxmann.com 1 (SC) dated September 18, 2013 (which lay down general rule that "it is only that interest provided for under the statute which may be claimed by an assessee from the Revenue and no other interest on such statutory interest") should not be followed. 5. Whether decision of two member bench of Hon'ble Delhi High Court in the case of Commissioner of Income Tax III Vs. Sutlej Industries Ltd [2010] 190 Taxmann 136 (Delhi) is binding upon the two member bench of Hon'ble Delhi High Court in the case of CIT vs. Engineers India Ltd and in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or net refund of Rs. 10,34,153. Ld. Assessing Officer has denied interest on excess tax paid and passed the order u/s 154 showing net tax refundable of Rs. 8,76,210. He did not give interest on excess tax paid of Rs. 8,00,000/. Against this order, he preferred an appeal before the first appellate authority and the first appellate authority has confirmed the order of the Assessing Officer, therefore, the assessee is in appeal before us. 4. The ld. DR relied on the order of the lower authorities and the CIT(A). and he argued that no application was filled by the assessee for claiming interest. 5. Ld. AR submitted that the assessee is entitled for interest on excess tax paid by way of self assessment tax, advance tax, TDS or any other mode of payment made by the assessee . Appellant has correctly calculated his tax due and filed return of income but by mistake he could not adjust his advance tax paid on 15.03.2008 at the time of filling of return and self assessment tax paid again on his balance tax due. The appellant, when come to his knowledge, filled rectification u/s 154 for claiming refund . He placed reliance on the case laws in CIT vs Sutlej Industries Ltd. (2010) 190 Taxman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee under section 140A is refunded, the assessee would be entitled to interest thereon since the self-assessment tax falls within the expression 'refund of any amount'. The computation of interest on self-assessment tax has to be in terms of section 244A(1)(b), i.e., from the date of payment of such amount up to the date on which refund is actually granted." He placed reliance also on the following judgements in support of his claim : 1). CIT vs. Engineers India Ltd. ( Del. H.C. ) ITA No. 300/2012 2). ACIT vs. M/s. Syndicate Bank Ltd. (ITA No. 1700 to 1704/ Bang/2013) 3). CIT Vs. Engineers India Ltd. (2015) 55 Taxman .com ( Delhi) 4. Union of India & Ors vs. S.K. Kapoor(Civil appeal No. 5341 of 2006) dated 16 March, 2015 5. Central Board of Dawoodi Bohra vs. State of Maharashtra & Anr. Dated 17 December, 2004 6. Safiya Bee vs. Mohd. Vajahath Hussain @ Fasi dated 16 December, 2010. 7. Union of India & ors. Vs. R.P. Singh dated 22 May, 2014 8. Order of Supreme Court of India in the case of CIT, Bhopal vs. HEG Ltd. (2010) 189 Taxman 335 (SC) 9. CIT vs. Gujrat Fluoro Chemicals (2014) 42 Taxmann.com 1(SC) 10. Amt. Manura & Ors (MAC App. 471/2014) dated 20 Feb. 2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all 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 (1) shall be payable to him in respect of the amount so found to be in excess.] (2) Where a refund is withheld under the provisions of section 241, 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 proceeding for the period commencing after the expiry of [three months from the end of the month in which the order referred to in section 241 is passed] to the date the refund is granted. [(3) The provisions of this section shall not apply in respect of any assessment for the assessment year commencing on the 1st day of April, 1989, or any subsequent assessment years.]" The provisions of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and in a case where the interest is reduced, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the amount of the excess interest paid and requiring him to pay such amount; and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly. (4) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989, and subsequent assessment years : Provided that in respect of assessment of fringe benefits, the provisions of this sub-section shall have effect as if for the figures "1989", the figures "2006" had been substituted." 9. After going through the provisions of section 244 and 244A and plethora of judgments cited by the appellant, we are of the considered opinion that the appellant is entitled for simple interest on the excess tax paid, by whatever name called, such as TDS or Advance Tax or self assessment tax. Such interest is payable to the assessee after adjustment of taxes due, from the da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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