TaxTMI 
TaxTMI 
2005 (12) TMI 452
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.... under section 244A of the Act on the amount of self-assessment tax paid by the assessee under section 140A of the Act. 2. The brief facts of the case are that, the return of income filed by the assessee was processed by way of intimation under section 143(1)(a) of the Act and no interest under section 244A was allowed by the Assessing Officer. In the appellate proceedings before CIT(A), the assessee had submitted that the Assessing Officer had not allowed interest on the refund determined at Rs. 48,71,729 i.e., on the amount paid as self-assessment tax on 30-9-1998. The Assessing Officer submitted the report dated 2-8-2000 before the learned CIT(A) in reply to the submissions made by the assessee and stated that the claim of the assesse....
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....sion of the Hon'ble Supreme Court in the case of Union of India v. Orient Enterprises [1998] 146 CTR 546, 549, wherein the writ petition filed by the assessee seeking payment of interest on delayed refund of the amount paid by the assessee towards customs duties, redemption fine and penalty under the Customs Act, 1962 was found to be not maintainable, as the Customs Act, as it stood at that point of time, did not provide for any such interest. Accordingly, writ petition was dismissed. 4. The learned Authorised Representative drew our attention to the provisions of section 244A(1) of the Act which starts with "where refund of any amount becomes due to the assessee under this Act". The section further provides that in addition to the said ....
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....ation to section 244A of the Act had come to the conclusion that no interest is payable on the self-assessment tax paid by the assessee and further stressed that this reliance by the department is an error. He contended that the Explanation to section 244A of the Act, does not cover the controversy and in any case the Explanation to any section is not to limit the provisions of the section as held by the Hon'ble Supreme Court in the case of S. Sundaram Pillai v. V.R. Pattabiraman AIR 1985 (SC) 582. He further submitted that on similar claim in assessment year 1997-98 in the case of assessee itself the Mumbai Tribunal in ITA No. 5847/Mum./2000 following the Tribunal decision in the case of Addl. CIT v. Novarits India Ltd. in [ITA No. 5848 (M....
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....of any tax, other than advance tax or tax deducted at source or penalty, interest shall be payable for the period starting from the date of payment of such tax or penalty and ending on the date of the grant of the refund (Refer to example III in para 11.8)" 6. In sub-section (1) to section 244A where refund of any amount becomes due to the assessee, it is stipulated that in addition to the refund the assessee shall be entitled to receive interest on the said refund under clause (a) to sub-section (1) of section 244A of the Act, interest shall be payable on the refund of tax deducted at source or advance tax paid by the assessee and in clause (b) to sub-section (1) to section 244A, the interest shall be paid on refund of any tax other tha....
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....mined as payable to the assessee. The provisions of the Act clearly provide that in addition the interest is payable on such sums which are held and utilized by the Government over and above the tax dues of the assessee under the provisions of Income-tax Act. Accordingly in addition to the refund of the money the assessee was entitled to receive interest on the said excess amount paid by him. We find support from the decision of the Mumbai Bench in the case of assessee itself for assessment year 1997-98 and also in the case of Novartis India Ltd. (both cited supra) which in turn relied on the decision of the Calcutta Bench in the case of Hooghly Mills Co. Ltd. v. Dy. CIT [2000] 74 ITD 309, wherein it has been held as under :- "The matter....