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2011 (9) TMI 244 - HC - Income TaxInterest u/s 244A - Adjustment of refund due with tax due - meaning and scope of term 'month' - Interest for the period from the date refund due upto the date when adjustment made - held that:- definition contained in Section 3(35) of the General Clauses Act defining the term 'month' cannot be adopted for the purpose of sub-section (1) of Section 244A of the Act. - If the contention of the assessee in the present case is accepted, in a case where the assessee pays tax on 31st January and is granted refund on 1st February of the same year, shall also be entitled to interest for two full months. This would be so because the assessee contends that for the purpose of sub-section (1) of Section 244A the term 'month' should be understood as British Calender month and since Rule 119(A) of the Rules provides for ignoring a fraction of month and granting interest for the full month instead - Tribunal committed error in holding that the assessee would be entitled to interest for both the months in entirety irrespective of dates when the tax was paid and refunded /adjusted - Decided in favor of revenue.
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