9911796707
TMI Blog1994 (7) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... erest under section 244(1A) is allowed only on the refund of the amount of tax paid in pursuance of an assessment and not on the advance tax and that interest under section 244(1A) is a debatable point and provisions of section 154 of the Act, were not applicable ?" The brief facts of the case are that the assessee has paid tax at source and advance tax of Rs. 38,500. The assessment was completed at a figure of Rs. 10,70,670. The advance tax and TDS was adjusted against the tax liability created of Rs. 6,18,311. On appeal, the assessment was completed at a minus figure of Rs. 4,62,270. The TDS and advance tax paid by the assessee was, therefore, liable to be refunded. The assessee claimed interest under section 214 up to the date of regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee is entitled to interest even in the proceedings under section 154. Section 244(1A) reads as under: "(1A). Where the whole or any part of the refund referred to in sub-section (1) is due to the 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 (1) on the amount so found to be in excess from the date on which such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f initial payment right up to the date on which the refund was actually made. The petitioner in that case had claimed interest only up to the date of the revised assessment and the High Court allowed interest to the petitioner only up to that date. In the present case, the assessee claimed interest under section 214 up to the date of regular assessment and under section 244(1A) up to the date of the order giving effect to the appellate order. A copy of the application dated February 24, 1984, made under section 154 or the copy of the order passed by the Income-tax Officer thereon have not been filed along with the statement of the case. The Commissioner of Income-tax (Appeals) found that the assessee is entitled to refund of Rs. 38,500 whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te in the case of Associated Stone Industries was with regard to the payment of interest under section 244(1A) which, according to the Revenue, is not payable on self-assessment tax and is payable only on the payment of tax consequent to assessment. From a reading of the order of the Tribunal, it appears that the order of the Tribunal is contradictory in itself. While dealing with the matter of interest on refund under section 244(1A), it was said that the matter requires elaborate discussion and is outside the purview of section 154. Since no amount was deposited in pursuance of an order of assessment, the provisions of section 244(1A) are not attracted. The assessee is, however, entitled to interest on the amount deposited as advance tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
