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2015 (2) TMI 1129 - HC - Income TaxInterest under Section 244-A on refund resulted out of Self Assessment Tax Paid - date from which such interest is payable - whether the tax paid under Section 140A will not attract Section 244A at all and, therefore, the interest allowed by CIT (A) is clearly illegal? - Held that:- The Scheme of statute makes it very clear that liability of interest as per the situation is on both the sides. Where assessment is completed at an income higher than the returned income, the tax payable by Assessee is specified in the notice of demand issued under Section 156 of Act, 1961. In case of shortfall in payment of tax vis-a-vis the tax finally due on the assessed income, the Assessee is liable to pay interest under Section 234B of Act, 1961. In the same way where amount of tax paid by Assessee is found higher and an amount is found refundable to Assessee, a similar obligation has been fastened upon Revenue. Where the prepaid tax are in excess of assessed tax, Assessee is entitled for refund of excess tax along with the interest. In the absence of an express provision as contained in Clause (a), it cannot be said that the interest is payable from the 1st of April of the assessment year. Simultaneously, since the said payment is not made pursuant to a notice issued under Section 156 of the Act, Explanation to Clause (b) has no application. In such cases, as the opening words of Clause (b) specifically referred to "as in any other case", the interest is payable from the date of payment of tax. - Decided in favour of Assessee.
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