TaxTMI 
TaxTMI 
2014 (1) TMI 837
X X X X Extracts X X X X
X X X X Extracts X X X X
.... admissible to the appellant as the refund arose out of a tax payment of Rs. 47,36,000/- made by the appellant on 18.3.2008 - after 15 months from the date of filing of the return for the A.Y. 2006-07 such payment being neither an Advance Tax payment nor a self assessment tax payment within the provisions of Sec. 140A. 2. On the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax erred in taking into account the decisions given in various forums allowing payment of interest on refunds arising not only out of Advance Tax/TDS but also out of any Tax payment made to the Department in whatever manner within the meaning of Sec. 244A(1) clause (b)." 3. The sum and substance of the grievance of the assessee is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be made before filing of return whereas the assessee has paid self assessment tax after 15 months of filing of its return. On these observations, the AO rejected the claim of interest of the assessee. 5. The assessee carried the matter before the Ld. CIT(A) but without any success. The Ld. CIT(A) observed that for the year under consideration, the return was filed on 30.11.2006 whereas the so called self assessment tax was paid on 18.3.2008 i.e. after 15 months. Therefore, the payment made by the assessee cannot be treated as self assessment tax. The Ld. CIT(A) further observed that even otherwise such payment was also not made as a result of any order of the AO. 6. Before us, the Ld. Counsel for the assessee explained the payment of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n general principles to pay the interest on sums wrongfully retained. We are also strengthened by the decision of the apex court for the above view taken in Sandvik Asia Ltd. v. CIT [2006] 280 ITR 643, wherein it is held as follows (headnote) : "In view of the express provisions of the Income-tax Act, 1961, an assessee is entitled to compensation by way of interest for the delay in the payment of amounts lawfully due to the assessee which are with held wrongly and contrary to law. The Government is liable to pay interest, at the rate applicable to the excess amount refunded to the assessee . . ." Finding no substantial question of law that arises for our consideration, the appeal is dismissed." 10. The Hon'ble Karnataka High ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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." Therefore, the object behind the 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. 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 c....