TaxTMI 
TaxTMI 
2013 (9) TMI 478
X X X X Extracts X X X X
X X X X Extracts X X X X
....in this appeal is that the learned Commissioner (Appeals) erred in directing the Assessing Officer to grant interest under section 244A of the Act on self-assessment tax paid ignoring the Explanation to section 244A(b) which presupposes the payment of tax or penalty consequent of notice of demand issued under section 156. 2. Brief facts of the present case, as culled out from the impugned order passed by the Assessing Officer are that the assessee is a public limited company and is engaged in the business of manufacturing and selling of pellets, hot / cold rolled coils / sheets, galvanized coils / sheets & plates and slag cement. The assessee filed its return of income for the year under appeal on 31st October 2007, declaring total incom....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rs v/s Vijaya Bank, ITA no.45 of 2011) (Karnataka High Court); ii) Sutlej Industries Ltd. v/s CIT, 325 ITR 331 (Del.); iii) ACIT v/s Vijaya Bank, 2010 TIOL 760 (Bangl.); iv) ADIT v/s G.E. Asset Mgt. Inc. 2010-TIOL-226-ITAT-Mum); v) DCIT v/s B.S.E.S. Ltd., 113 TTJ 227 (Mum.); vi) CIT v/s Cholamandalam Investment and Finance Co. Ltd., (2007) 294 ITR 438 (Mad.); vii) CIT & Ors. v/s M/s. Vijaya Bank, ITA no.45 of 2011 (Kar.); viii) Sutlej Industries Ltd. v/s CIT, 325 ITR 331 (Del.). 5. The learned Commissioner (Appeals) directed the Assessing Officer to grant interest under section 244A, after observing and holding as under:- "7.1 The Hon'ble High Courts of Madras, Karnataka and Delhi have held in the above cited deci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ia Today Ltd. ITA No. 1605/Mum/2010 (Mum) 11. ACIT vs. Royal Bank of Scotland NV 138 TTJ 698 (Kol) He submitted that this issue now also stands concluded by the judgments of the Hon'ble Supreme Court also in Cholamandalam Investment & Finance Co. Ltd. (supra) and H.E.G. Ltd. (supra) 7. Learned Departmental Representative fairly conceded that the issue involved stands concluded by the aforesaid decisions, specifically the judgment of the Hon'ble Supreme Court in H.E.G. Ltd. (supra). 8. After carefully considering the facts of the present case and the relevant findings of the learned Commissioner (Appeals), we find that the issue of granting of interest under section 244A on self-assessment tax in terms of section 140A is....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... belonging to the taxpayers and wrongly withheld by the Government. This is based on the principle that if the Revenue had, in the first instance, made correct assessment of the tax liability of the assessee, the assessee would not have been deprived by the use of money. In such a situation, where prepaid taxes are in excess of the assessed tax, the assessee is entitled to refund of such tax along with interest thereon. Where an assessee out of abundant caution pays self-assessment whilst staking a claim in the return, which claim is accepted, resulting in refund of self-assessment tax, the assessee should be equally entitled to interest thereon. Sec. 244A was inserted in the statute as a measure of rationalization to ensure that the assess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hout any substance. 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 case, that after the expiry of the financial year, the assessee may pay tax either along with the self-assessment return or even before the return is filed. If ultimately the said payment is found to be in excess and the Department chooses to refund the said amount, then the question would be, from what date interest is payable since interest is payable on such refunds under s. 244A. In the absence of an express proviso as contained in cl. (a), it cannot be said that the interest is payable from the 1st of April of the assessment year. At the same time, as the said payment of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....estment 7 Finance Co. Ltd., [2007] 294 ITR 438 (Mad.) Even though the short title to s. 140A reads as self-assessment, the charging phrase employed in s. 140A, namely, where any tax is payable on the basis of any return required to be furnished under s. 115WD or s. 115WH or s. 139 or s. 142 or s. 148 or s. 153A, as the case may be, the assessee shall be liable to pay such tax together with interest payable under any provision of this Act for any delay in furnishing the return, makes it clear that there is no difference between : (i) the tax paid under s. 115W], which deals with advance tax in respect of fringe benefits; or (ii) the tax collected at source under s. 206C; or (iii) any tax paid by way of advance tax or any tax treated as pa....