2000 (10) TMI 172

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....are that at the time of processing the return under section 143(1)(a) dated 29-7-1992 a demand of Rs. 15,875 was created against the assessee after adjusting advance tax paid of Rs. 22,350 only. After receipt of this intimation, the assessee moved an application under section 154 on 1-9-1992 requesting that inadvertently the assessee had paid advance tax of Rs. 1,24,908 alongwith TDS in respect of interest payments to seven creditors amounting to Rs. 44,101, totalling Rs. 1,69,009 through Challan No. 2 which was the challan meant for payment of tax deducted at source and that challan was submitted alongwith the annual return of TDS in Form No. 26A. Accordingly, it was prayed that instead of the demand raised by the Assessing Officer amounti....

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....aking reference to the ITO TDS. It was submitted that since the money has been paid into Government account over and above the tax which is due from the assessee, the assessee is entitled to interest on the excess payment of tax. Merely because the advance tax has been paid in a Form meant for TDS, the assessee cannot be denied interest due on the excess payment of advance tax. It was submitted that the forms meant for payment of TDS, advance tax or for that matter any other tax, are non-statutory forms and these are meant for the convenience of the tax payers. Simply because the payment of advance tax has been made in a wrong challan, will not deprive the assessee of interest which is legally due to him on the excess payment which is permi....

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....lar assessment; (b) in any other case, such interest shall be calculated at the rate of one 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 date on which the refund is granted. 6.1 A perusal of the above clearly indicates that the assessee is entitled to interest on refund which became due to the assessee after adjusting the demand raised against the assessee by way of assessment. No statutory form has been prescribed for the payment of tax. Form in Challan No. 1 meant for advance tax and Challan No. 2 meant for TDS are all nonstatutory forms which are meant for the convenience of the taxpayers. Neither in the Income-tax Ac....