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2014 (1) TMI 837 - AT - Income TaxAdmissibility of Interest 244A of the Act – Refund on tax payment – Held that:- The decision in CIT Vs Cholamandalam Investment & Finance Co. Ltd. [2007 (6) TMI 69 - HIGH COURT , MADRAS] and Sandvik Asia Ltd. v. CIT [2006 (1) TMI 55 - SUPREME Court] followed - The object behind the insertion of section 244A, is that an assessee is entitled to payment of interest for money remaining with the Government which would be ordered to be refunded - when the amount is ordered to be refunded the interest is to be calculated from the date of such payment of tax - how the Department has understood the section coupled with the fact that the principle underlying the said section is that, any excess payment of tax paid by the assessee is not only to be refunded but it has to be refunded with interest, if the case of the assessee does not fall under clause (a) or the Explanation to clause (b), the excess tax paid shall be refunded with interest from the date of payment of such tax - the AO is directed to allow interest u/s. 244A from the date of the payment of tax – Decided in favour of Assessee.
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