2012 (8) TMI 978 - HC - Income Tax

High Court affirms interest on self-assessment tax payments under Income Tax Act

COMMISSIONER OF INCOME-TAX, JAIPUR II Versus MANGALAM ARTS

The High Court upheld the decision regarding the allowability of interest on self-assessment tax payments under sections 244A(1)(b) and 140A(3) of the ... Payment of allowability of interest u/s.244A(1)(b) on excess payment u/s.140A(3)- Held that:- Considering clear position of Sec 244A(1)(b) of the Act, the assessee is eligible to get interest on self assessment tax payment also. Therefore, in such circumstances and facts of the case, we find no infirmity in the order of the ld. CIT(A) who has rightly allowed the claim of the assessee. Thus the solitary ground of the Revenue is dismissed Issues Involved:Allowability of interest u/s.244A(1)(b) on excess payment u/s.140A(3) of the Income Tax Act.Analysis:The High Court considered the issue of the payment of interest u/s.244A(1)(b) on excess payment u/s.140A(3) of the Income Tax Act. The Court referred to a previous judgment where it was held that tax paid by self-assessment u/s.140A gets adjusted against the assessed tax and is eligible for interest. The Court cited judgments from the Karnataka, Madras, and Delhi High Courts, along with the Supreme Court's decision in the case of Modi Ind. Ltd. v. CIT. The Tribunal's decision was based on these precedents, and the High Court found no reason to deviate from this established position. Consequently, the appeal was dismissed based on the previous order.In conclusion, the High Court upheld the decision regarding the allowability of interest on self-assessment tax payments. The Court relied on various judgments, including those from the Supreme Court and different High Courts, to support the position that interest is payable on excess tax payments made under self-assessment. The appeal was dismissed in line with the previous order, confirming the eligibility of the assessee to receive interest on such payments.