TMI Blog2012 (7) TMI 730X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, be entitled to receive, in addition to the said amount, simple interest thereon calculated - The provisions of section 244A are very explicit and categorical that "where refund of any amount, becomes due to the assessee under this Act…..". There is misconception in the interpretation of the AO that the provisions of s. 244A do not explicitly provide for payment of interest on refund of self assessment tax - that the issue has not been appropriately addressed either by the AO or the CIT (A) issue is remitted back to the file of the AO with a specific direction to look into the matter afresh - in favour of assessee for statistical purposes. - IT APPEAL NOS. 352 & 391 (BANG.) OF 2011 - - - Dated:- 8-6-2012 - GEORGE GEORGE K., JASON P. BOAZ, JJ. S.K. Ambastha for the Appellant. K. Venu Gopala Raju for the Respondent. ORDER George George K , Judicial Member These two appeals, one preferred by the revenue and the other by the assessee are directed against the CIT(A)'s order dated 25.11.2010 in relation to assessment year 1996-97. 2. Since these appeals pertain to the same assessee, they are heard together and disposed off by this consolidated order for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 3/8/2004 did not refund the interest levied under section 234C amounting to Rs. 80,64,680/-. The Assessing Officer also did not grant interest under section 244A on the self assessment tax paid by the assessee amounting to Rs. 1,50,00,000/- on 24/6/1996. 6. Aggrieved, the assessee filed a Rectification Application contending that the assessee is entitled to refund of the interest under section 234C of the Act and also is entitled to the grant of interest under section 244A of the Act on payment made under section 140A of the Act. The assessee further contended that it is entitled to interest on interest. The Assessing Officer passed order under section 154 of the Act (dated 31st August, 2005) rejecting the plea of the assessee. 7. Aggrieved, the assessee filed appeal before the first appellate authority. 8. The CIT(A) partly allowed the assessee's appeal by directing the Assessing Officer to refund the interest that was paid under section 234C of the Act. The CIT(A) also held that the assessee is entitled to interest on self assessment tax from 24/6/1996 to 26/6/2000 by taking support of the judgement of the Hon'ble Karnataka High Court in the case of CIT v. N.G. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance-tax, self-assessment tax, besides dutifully interest u/s 234C of the Act. This act of the assessee exhibits its bona-fide intention towards payment of taxes to Government Exchequer. When the appellate authorities have allowed the assessee's contention to carry forward the losses for the AYs 1993-94, 94-95 and 95-96 and to set off against the income of the assessee for the AY 1996-97 (under consideration) and while giving effect to such appellate orders, the AO had determined the loss at Rs.1.6 crores (for the AY 1996-97) and, consequently, refunded the entire TDS, advance-tax, self-assessment tax and also interest payment u/s 234B of the Act, but refused to refund the interest levied u/s 234C of the Act. 12.2 It is an undisputable fact that though the AO had concluded the assessment way back in 1999, the assessment reaches its finality in all respects only when the appellate forum decided the issues on such an assessment. In the present case, consequent on the final findings recorded by the appellate authorities, there was no liability to pay tax u/s 207 of the Act for the AY under consideration and, therefore, levy of interest u/s 234C for deferment of advance-tax payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly provide for payment of interest on refund of self assessment tax. If the interpretation of the Revenue were to be taken on its face value, we are apprehensive that it would lead to miscarriage of justice. We are, therefore, in disagreement with the contention put-forth by the Revenue. Moreover, the Hon'ble jurisdictional High Court in the case of N.G.E.F. Ltd. ( supra ) had categorically held that the assessee is entitled to interest on the self assessment tax paid. We, therefore, sustain the findings of the CIT (A) on this point. It is ordered accordingly. II. ITA No. 391/B/11 - by the assessee: 14. The lone grievance of the assessee is that the CIT (A) ought to have appreciated that the assessee was entitled to interest on delayed grant of interest on self-assessment tax. 14.1 Briefly, the assessee had, while furnishing its return of income, made payment of self-assessment tax of Rs. 1.5 crores and by virtue of order dated 26.6.2000, the AO had refunded the said sum without allowing interest u/s 244A of the Act. It was the claim of the assessee that interest on such interest from 26.6.2000 till the grant of interest on Rs. 1.5 crores be allowed. Further, it was cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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