2005 (5) TMI 35

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.... section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"): "(a) Whether, the Income-tax Appellate Tribunal was correct in law in granting the interest under section 244(1A) of the Income-tax Act to the assessee from March 28, 1988 to the date of adjustment, i.e., July 25, 1991, and thereafter again from March 28, 1988, to the date of grant of refund on the principal sum? (b) Whether, the Income-tax Appellate Tribunal has correctly interpreted the provisions of sections 237, 240, 241, 244 and 245 of the Income-tax Act?" The assessee filed its return for the assessment year 1987-88 on July 31, 1987. A sum of Rs. 3,23,68,834 was paid as self-assessment tax on September 12, 1987. The assessment was made under sec....

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....he imposition of interest will unnecessarily be an objection either as to computation or as to the method or manner of imposition of interest. Therefore, such objections cannot be agitated by the assessee in an appeal. It has also been held in the case of Princess Usha Trust v. CIT [1989] 176 ITR 227 (MP) that the levy of interest is not a part of the process of assessment. Therefore, by denying the liability to pay interest under section 220(2) of the Act, the assessee cannot be held to be denying its liability to be assessed under the Act. It was further held that section 246(1)(c)[now section 246(1)(a)] cannot be held to be attracted. In the instant case, the dispute merely relates as to whether the interest is to be charged under sectio....

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....y 25, 1991. Under section 244A, an assessee, where refund of any amount becomes due to the assessee, shall, subject to the provisions of the section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the manner specified in the section. The proviso to section 244A(1)(a) provides a restriction and states that no interest shall be payable if the amount of refund is less than 10 per cent, of the tax as determined under section 143(1) or on regular assessment. In terms of section 245, the Assessing Officer is entitled to set off refund against tax remaining payable in terms of that provision. Entitlement of an assessee to refund is regulated under the provisions of section 237 of the Act which agai....