2015 (12) TMI 969

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....eard Mrs.Lakshmi Sriram, learned counsel for the appellant and Mr.T.R.Senthilkumar, learned Standing Counsel for the respondent. 3. The appellant/assessee filed a return of income for the assessment year 1991-92. A notice was sent on 13.11.1992 demanding tax payable in terms of section 143 (1) of the Act. 4. After travelling back and forth, the assessing officer passed an order in revision on 23.3.2000 determining a sum of Rs,55,46,424/-as a refund due to the assessee and re-determined the total income. This order was actually to give effect to, a petition for rectification filed on 11.12.1999. 5. Admittedly, the appellant had paid a sum of Rs. 20,00,000/- on 29.6.1991, as tax due under section 140A. This amount actually became ref....

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.... under section 244A. 10. The assessee has been compelled to file two appeals in view of the fact that the Department's appeal was allowed and the crossobjection was only partly allowed. But, the questions arising for consideration in both the appeals revolve only around the entitlement of the appellant to interest. The following questions of law were framed at the time of admission:- "1. Whether the Income Tax Appellate Tribunal is right in law in holding that the appellant is not entitled to interest under Section 244A(1)(a) because the payment did not fall under advance tax falling under Section 244A(1)(a), when the assessing officer himself treated the payment as Advance Tax in the order passed under Section 143(1)(a), 14....

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.... year immediately preceding the assessment year, such interest shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period from the 1st day of April of the assessment year to the date on which the refund is granted; Provided that no interest shall be payable if the amount of refund is less than ten per cent of the tax as determined under sub-section (1) of section 115WE or sub-section (1) of section 143 or on regular assessment; (b) in any other case, such interest shall be calculated at the rate of one-half per cent for every month or 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 dat....

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....244A. The relevant portion of the order of the Tribunal reads as follows:- "7. We have considered the rival contentions in the light of the material placed before us and the precedents relied upon. In this regard, we find that the learned CIT (A) had made the aforesaid decision in favour of the assessee placing reliance upon Hon'ble Jurisdictional High Court decision in CIT v. Needle Industries (P) Ltd. (111 Taxman 679). It is contention of the Revenue that the decision relied on the CIT (A) is not applicable in this case, since the question considered in that case was whether interest paid under section 139(8) & 215 which becomes refundable could be considered as "amount paid in pursuance of any order of assessment or not as l....