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TMI Blog1984 (12) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Later the penalty appears to have been deleted and the assessee sought for refund along with interest under s. 244(1A). The ITO calculated the amount of interest on the principal amount of penalty levied but refused to allow interest on the amount of interest paid by the assessee under s. 220(2). On appeal the CIT(A) was of the opinion that the interest paid under s. 220 also becomes refunda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount or any part thereof having been found in appeal or other proceeding under this Act to be 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-s. (1) on the amount so found to be in excess from the date on which such amount was paid to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o analysis of s. 244(1A) of the IT Act by S. C. Maheshwari printed at pp. 192 to 194 of the Articles portion of 37 CTR, para 8 thereof reads as under: "What is the composition of the refund amount is immaterial for the purpose of interest. If other conditions are satisfied the fact that amount which has resulted in refund was originally recovered in tax, penalty or interest under s. 139, 215, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that there is a difference between the language of sub-s. (1) and sub-s. (1A). Whereas the farmers refers to refund in pursuance of an order referred on in s. 240, the latter refers to interest on the excess amount which the assessee is liable to pay as tax or penalty which impliedly means that interest is not to be taken into consideration for the purpose of this sub-section. Since the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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