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2015 (9) TMI 58 - AT - Income TaxInterest under section 201(1A) - interest as computed by the Assessing Officer by taking the period of delay on the basis of British calendar month instead of month of 30 days as claimed by the assessee - Held that:- In the present case, clause (ii) of section 201(1A) read with clause (b) of rule 119A is applicable and it provides that where the interest is to be calculated for every month or part of a month comprised in a period, any fraction of a month shall be deemed to be a full month, and the interest shall be so calculated. It is observed that similar controversy had arisen in the case of CIT v. Arvind Mills Ltd. [2011 (9) TMI 244 - GUJARAT HIGH COURT ] wherein the assessee claimed interest under section 244A on the basis of British calendar month.. The Tribunal allowed the same. When the matter was carried before the hon'ble Gujarat High Court in an appeal filed by the Revenue, their Lordships held that a reading of sub-section (1) of section 244A, the relevant provisions of which are analogous to the provisions of clause (ii) of section 201(1A) read with rule 119A, would make it clear that the term "month" must be given the ordinary meaning of the term of 30 days period and not the British calendar month as defined in section 3(35) of the General Clauses Act. It was held that the definition given in the General Clauses Act cannot be adopted for the purposes of sub-section (1) of section 244A as such importation of the definition would lead to anomalous situation. In our opinion, the ratio of the decision of the hon'ble Gujarat High Court in the case of CIT v. Arvind Mills Ltd. (supra) is squarely applicable in the present case and direct the Assessing Officer to recompute the interest payable under section 201(1A) by taking a period of 30 days as a month instead of British calendar month - Decided in favour of assessee.
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