TaxTMI 
TaxTMI 
2011 (7) TMI 582
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....this appeal challenging the order passed by the Tribunal which has granted interest on the amount of tax refunded from the date of payment of the tax, on the ground that the said tax was paid on self-assessment. 3. The assessee is a Nationalised Bank. It filed return of income on 24-10-2002 declaring book profits under section 115JB amounting to Rs. 105,47,01,155. The Assessing Officer completed the assessment under section 143(3) of the Income-tax Act (hereinafter referred to as the 'Act'), on 25-3-2003. The assessee preferred an appeal against the said order before the Appellate Commissioner, who partly allowed the appeal by its order dated 19-3-2004. The said order attained finality. The Assessing Officer, while giving effect to the or....
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....l came to be dismissed confirming the order passed by the Appellate Commissioner. Aggrieved by the said order, the revenue is in appeal. 4. The learned counsel for the revenue, assailing the impugned order, contends that admittedly the case did not fall under section 244A(1)(a). It falls under Clause (b). The Explanation to the section makes it very clear that the date of payment of tax referred to in the aforesaid clause means, the date on and from which the amount of tax is paid in excess of the notice of demand under section 156 of the Act. In cases where tax tax paid previous to the demand, interest is payable from the date of the assessment order when the determination of tax liability and the adjustment of tax paid actually takes pla....
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....part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation.-For the purposes of this clause, 'date of payment of tax or penalty' means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 156 is paid in excess of such demand." The aforesaid provision makes it clear, where any amount becomes due to the assessee under the Act by way of refund, the assessee is entitled to receive the said amount of refund with simple interest thereon. How the interest is to be calculated and the rate of interest is provided in the clauses (a) and (b). In calculating the interest....
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.... which is not covered under clause (a). The interest is payable from the date of payment of tax. An Explanation is added to this clause defines the meaning of the word 'date of payment of tax or penalty' in the aforesaid clause to mean, the date on and from which the amount of tax specified in the notice of demand issued under section 156 is paid in excess of such payment. Therefore, if tax is paid in pursuance of a notice of demand issued under section 156 of the Act, and if that tax or any portion of that tax is ordered to be refunded, the said amount is refundable with interest from the date of such payment. In other words, the interest payable on such amount is not to be calculated from the First of April of the assessment year as provi....
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....14, 243 and 244 to provide that the provisions of these sections shall not apply to the assessment year 1989-90 or any subsequent assessment years." 11. Therefore, the object behind insertion of section 244A as understood by the Department is that, an assessee is entitled to payment of interest for money remaining with the Government which would be ordered to be refunded. Therefore, if that is the object behind the insertion of section 244A, the contention of the revenue that if the case does not fall under either of the clauses in section 244A, no interest is payable, is without any substance. 12. Clauses (a) and (b) specifically refer to the instances where interest is paid under the Act. It is not exhaustive. It is possible, in a given....