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2019 (2) TMI 239 - HC - Income TaxInterest u/s 244A on refunds - tax collected at source under Section 206C of the Act or paid by way of advance tax or treated as paid under Section 199 of the Act - assessee declared loss and in said return claimed the income relatable to the payments made during the said year as well as during earlier two Assessment Years - Held that:- We are of the opinion that the Assesses case falls under clause (a) which covers situation where the refund is out of any tax collected at source or paid by way of advance tax or treated as paid under Section 199. This reference to treat tax as paid under Section 199 of the Act, would clearly cover the tax deducted at source. In the present case, the Assessee had suffered deduction of tax at source at the time of payments. In that view of the matter, the case of the Assessee would clearly be covered under clause (a) to subsection (1) of Section 244 of the Act. In such a situation, this clause provide that, interest shall be calculated at the rate of ˝ % for every month or part thereof, comprising a period from the 1st day of April of the Assessment Year to the date on which the refund is granted, provided the return is filed before the due date, specified in sub-section 1 of Section 139 of the Act. Here, the reference “from the 1st day of April of the Assessment Year” which is the starting point for computing the interest payable, must be to the Assessment Year, in which, the tax was deducted at source. Since this expression has to be read along with the main body of clause (a) which refers to the refund arising out of, inter alia, of the tax treated to have been paid as per Section 199 of the Act. Any other view, would be holding untenable since, the Revenue which has received the tax deducted at source from the payments to be made to the Assessee and appropriate the same, would refund the same but the interest would be accounted much later when the return giving rise to the refund, is filed. - Decided against revenue
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