TMI Blog2012 (9) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... 140A and as in the present case undisputedly, the refund is on account of self assessment tax made u/s. 140A ssessee is entitled to interest u/s. 244A - in favour of assessee. - I.T.A. No.608 /AHD/2012 - - - Dated:- 27-7-2012 - SHRI G.C.GUPTA SHRI ANIL CHATURVEDI, JJ. Appellant by : Mr.S.N. Soparkar, Sr.Adv. with Mr. Jaimin Gandhi Respondent by : Mr. S.K.Gupta, CIT (DR) ORDER PER: SHRI ANIL CHATURVEDI, A.M. This appeal is filed by the assessee against the order of Ld. CIT (A)- III, Baroda dated 21-12-2011 for the Assessment Year 1997-98. 2. The only effective ground raised by the assessee is regarding the denial of interest u/s. 244A of the I.T. Act. 3. Brief facts of the case are that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of self assessment tax is a debatable issue as to whether the interest is to be granted or not and if it is to be granted then from which date is to be granted. He further held that the right course for the appellant was to file the appeal against the order giving effect to the order of the CIT (A) in which the interest u/s. 244A was not granted to it. He was therefore of the view that the A.O. has rightly refused to allow interest u/s.244A on refund made out of self assessment tax paid while passing the order u/s.154. 5. Against this order, the assessee is in appeal before us. Before us the Ld. A.R. submitted that the assessee had claimed interest of excess payment of self assessment tax u/s. 244A interest is payable on such payment of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the assessee is entitled to interest u/s. 244A as per Cl. (i) (b) when the refund has arisen on account of payment of self assessment tax. The Hon ble High Court following the decision in the case of CIT vs. Ashok Leyland Ltd. (2002) 254ITR 641(Mad) and Sandvik Asia Ltd. vs. CIT (2006) 280 ITR 643(SC) held as under:- Even though the short title to section 140A of the Income tax Act, 1961, reads self assessment , the charging phrase employed in section 140A, namely, where any tax is payable on the basis of any return required to be furnished under section 115WD or 115WH or section 139 or section 142 or section148 or section153A, as the case may be, the assessee shall be liable to pay such tax together with interest payable under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The Assessing Officer in a rectification proceeding under section 154, withdrew interest amounting to Rs.39,38,684 granted under section 244A of the Act for the reason that the refund arose on account of payment of self-assessment tax made under section 140A. On appeal, the Commissioner (Appeals) allowed the interest on refund and that order was confirmed by the Tribunal. On appeal by the Revenue. HELD dismissing the appeal, that in view of the expenses provisions of the I.T. Act, 1961, an assessee is entitled to compensation by way of interest for the delay in the payment of amounts lawfully due to the assessee which were withheld wrongly and contrary to law. The Govt. was liable to pay interest at the rate applicable to the exce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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