1984 (12) TMI 93

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.... the IT Act and the same was paid along with some interest under s. 220(2) of the IT Act. Later the penalty appears to have been deleted and the assessee sought for refund along with interest under s. 244(1A). The ITO calculated the amount of interest on the principal amount of penalty levied but refused to allow interest on the amount of interest paid by the assessee under s. 220(2). On appeal th....

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.... the 31st March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be 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-s. (1) on the....

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....r s. 244(1) of the IT Act). To further support this argument he drew our attention to analysis of s. 244(1A) of the IT Act by S. C. Maheshwari printed at pp. 192 to 194 of the Articles portion of 37 CTR, para 8 thereof reads as under: "What is the composition of the refund amount is immaterial for the purpose of interest. If other conditions are satisfied the fact that amount which has resulted....

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....e was not in a position to do so. On a perusal of the language used in this section we find that there is a difference between the language of sub-s. (1) and sub-s. (1A). Whereas the farmers refers to refund in pursuance of an order referred on in s. 240, the latter refers to interest on the excess amount which the assessee is liable to pay as tax or penalty which impliedly means that interest is ....