9911796707
TMI Blog1999 (9) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 14,97,362 and self-assessment tax of Rs. 2,50,00,000. The CIT(A) states thereafter that the return was processed under section 143(1)(a) of the Act and the income disclosed by the assessee was also accepted by the Assessing Officer. The refund was determined by the Assessing Officer at Rs. 2,21,03,624 after allowing credits of the abovementioned two items. However, no interest under section 244A was allowed by the Assessing Officer On the amount of refund. 3. In the first appeal also, the CIT(A) upheld the action of the Assessing Officer in not allowing the interest as claimed by the assessee for the reasons given by her, to which we will advert later on. 4. At the time of hearing of the appeal before us, the ld. counsel for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ends that actually the intimation issued by the Assessing Officer in this case on processing of the return filed by the assessee, under section 143(1)(a) will have to be deemed as a notice of demand under section 156, for the purpose of Explanation to section 244A(1)(b.) 5. The CIT(A) also discussed this issue, most probably raised by the assessee before her also. She, however, says in this connection that no notice of demand was issued under section 156 levying tax or penalty in the instant case. She furthermore states as follows: "The intimation under section 143(1)(a) is only fictionally taken as a notice of demand under section 156. Like all other fictions, to understand the meaning of this fiction so created here, one must look to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of allowing interest to the assessee. So far as, however, the present case is concerned, the assessee claims interest on excess payment of self-assessment tax along with TDS over the tax determinable in the processing under section 143(1)(a). There cannot be any doubt about the fact that in accordance with clause (b) of sub-section (1) of section 244A, such interest is clearly payable to the assessee. So far as, however, the Explanation to the said clause is concerned, we are not in a position to agree with the arguments of the CIT(A) with regard to applicability of that Explanation to the present case. As pointed out by the ld. counsel for the assessee, the intimation itself, on completion of processing under section 143(1)(a), is to be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest is required to be paid by the Government to the assessee for holding and utilising the excess money paid by the assessee over and above its tax dues. In the instant case, there cannot be any doubt about the fact that the assessee had paid much more self-assessment tax than was required under the relevant provisions of law. This is clear from the fact that as much as a refund of Rs. 2,12,03,624 arose in favour of the assessee even by accepting the returned income. Although, therefore, the payment of Rs. 2,50,00,000 has been claimed by the assessee and also considered by the departmental authorities, to be self-assessment tax, actually the same is not exactly of the nature of self-assessment tax. The amount which the assessee was require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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