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2015 (1) TMI 790 - AT - Income TaxInterest on self- assessment tax u/s 244A by filing rectification application u/s 154 - rejection of claim - eligibility of assessee for interest on refund as per clause (b) of Sub-section (1) of section 244A - Held that:- Nothing in the language of the provision or the Explanation thereto, that would suggest the commencement date of the interest as the date of the processing of the return qua which the refund is being granted, i.e., as being argued before us in context of refund of self assessment tax. True, it is only upon processing of the return that the excess is determined under the procedure of assessment provided for under the Act. However, the payment of self-assessment tax assumes the nature of income tax on its payment by the assessee itself (refer: s. 140A). The date of payment of the excess is not to be confused with the date on which it is so found, i.e., to be in excess; the payment of interest being even otherwise compensatory in character. The issue involved is debatable and, thus, outside the ambit of sec. 154. However, as sought to be clarified hereinbefore, the reading of the order, the language of sec. 244A(1) is patently clear and admits of no debate. Even the argument raised by the Revenue with reference to the Explanation thereto arises only out of a misreading of the same. Under the circumstances, we, for the reasons afore-stated, confirm the order of the first appellate authority in principle. The AO shall verify if any interest has been allowed to the assessee on the processing of its return for the year or not, and allow interest u/s. 244A(1)(b) on the self-assessment tax of ₹ 150 lacs accordingly. Decided against revenue.
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