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2014 (10) TMI 262 - HC - Income TaxChargeability of interest u/s 234D – Held that:- Following the decision in The Commissioner of Income Tax Versus M/s. Indian Oil Corporation Ltd. [2012 (9) TMI 517 - BOMBAY HIGH COURT] - a declaratory amendment in an Explanation 2 to section 234D which specifically provides that it shall also apply to an assessment year commencing before 1/06/2003 - The only qualifying criterion is that proceedings in respect of such assessment is completed after 1/06/2003 - once the Explanation is held to be retrospective in relation to the assessment years commencing before 1/6/2003 it would not be open to restrict the operation of section 234D only with effect from 1/6/2003 - Under the Act what is brought to tax is not the income of the assessee in the assessment year but the income of the assessee in the previous year - The liability to tax arises on account of the Finance Act which fixes the rate at which the tax is to be paid - The law to be applied is as existing on the 1st day of April of the previous year – Decided in favour of revenue. Grant of interest u/s 244A(1)(b) – Held that:- Following the decision in Commissioner of Income Tax v/s Sutlaj Industries Limited [2010 (3) TMI 449 - DELHI HIGH COURT] - the assessee should be, on principle entitled to interest thereon since the self-assessment tax falls within the expression “refund of any amount” - The computation of interest on self-assessment tax has to be in terms of section 244A(1)(b), i.e., from the date of payment of such amount up to the date on which refund is actually granted – Decided against revenue.
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