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2013 (11) TMI 1437 - HC - Income TaxWhether Withdrawal of refund u/s 244(1A) can be made by rectification u/s 154 – Held that:- The excess amount of tax paid under sub-section (1A) of Section 244 must be calculated by treating the amount of tax deducted at source and the amount of advance tax which were adjusted against the assessee's liability to pay tax as well as the amount of tax paid directly upon the assessment under Chapter XVII of the Income Tax Act – Following Leader Engineering Works [1989 (2) TMI 92 - PUNJAB AND HARYANA High Court] - The amount which was retained by the Income Tax Officer and adjusted against the tax demand must be treated as payment of tax pursuant to the assessment order by the assessee - On the day the advance tax amount is paid there is no assessment and, hence, it cannot be said to have been paid "in pursuance of any order of assessment". The provisions in the Income Tax Act allowing interest on refund have to be strictly construed - The AO did not commit any error of law in issuing notice under Section 154 and making an order by which the interest on refund was not clearly allowable – Decided in favour of Revenue.
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