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2012 (7) TMI 730 - AT - Income TaxLevy of interest u/s 234C - CIT(A) deleted the levy - Held that:- Though the AO had concluded the assessment way back in 1999, the assessment reaches its finality consequent on the final findings recorded by the appellate authorities, there was no liability to pay tax u/s 207 for the AY under consideration and, therefore, levy of interest u/s 234C for deferment of advance-tax payable by the assessee does not arise when the income of the assessee had finally been arrived at a loss of Rs. 1.6 crores. Interest paid under section 234C is for deferment of advance tax. When advance tax paid is refunded and also interest paid under section 234B, there is no logic in making the assessee liable for interest under section 234C for deferment of payment of advance tax - CIT (A) was justified in directing the AO to refund the interest levied u/s 234C - in favour of assessee Interest under section 244A on refund of self assessment tax - Held that:- If Refund of any amount becomes due to an assessee under this Act, he shall, subject to the provisions of this section, 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.
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