TaxTMI 
TaxTMI 
2008 (12) TMI 93
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....he sake of clarity and convenience, the facts in MAIT No. 58 of 2004 are adumbrated herein. 2. In these appeals, the following substantial question of law is involved: "Whether the Tribunal is justified in holding that the assessee is entitled to interest even on the amount of interest allowed or allowable under section 244A when section 244A of the Act provides for payment of simple interest only?" 3. The assessee, a company incorporated under the Companies Act, 1956, filed its return declaring a total income of Rs. 10,48,96,320. Thereafter, a revised return was filed declaring a total income of Rs. 8,64,95,970 on February 4, 1997. The return was processed under section 143(1)(a) and the total income was finally determined at Rs. ....
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....oresaid order, the assessee as well as the Revenue preferred an appeal before the Income-tax Appellate Tribunal. The Appellate Tribunal confirmed the decision of the Commissioner of Income-tax (Appeals) and, accordingly, dismissed the appeal of the assessee and partly allowed the appeal of the Revenue. Though many a ground was urged, the learned counsel for the Revenue referring to the grounds stated in MAIT No. 58 of 2004 has restricted the question to the one we have reproduced above. 5. Be it noted, the present bunch of appeals relates to the assessment years 1991-92, 1992-93, 1994-95 and 1995-96. The question for determination fundamentally and basically is whether the society is entitled to interest on interest under section 244A of....
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....and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted." 8. Section 244A of the Act which deals with interest on refund(s) reads as follows: "244A. Interest on refunds - (1) Where refund of any amount becomes due to the assessee under this Act, he shall, subject to the provisions of this section, be entitled to receive, in addition to the said....
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....cer does not grant the refund within the stipulated time, the Central Government is required to pay simple interest at the stipulated rate. Section 240 deals with refund on appeal, etc. This provision clearly lays down that where as a result of any order passed in appeal or other proceedings under this Act, refund of any amount becomes due to the assessee, the Assessing Officer shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in that behalf. The crucial expressions in section 240 are 'any amount which becomes due to the assessee as a result of any order passed in any appeal or other proceedings under the Act' and the 'amount becomes due to the assessee'. Section 244 refe....
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....see or any amounts are wrongfully withheld from an assessee without authority of law the Revenue must compensate the assessee. At the initial stage of any proceedings under the Act any refund will depend on whether any tax has been paid by an assessee in excess of tax actually payable by him and it is for this reason that section 237 of the Act is phrased in terms of tax paid in excess of amounts properly chargeable. It is, however, of importance to appreciate that section 240 of the Act, which provides for refund by the Revenue on appeal, etc., deals with all subsequent stages of proceedings and, therefore, is phrased in terms of 'any amount' becoming due to an assessee. The Delhi High Court in Goodyear India Ltd.'s case [2001] 249 I....