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2020 (9) TMI 1045 - AT - Income TaxNon granting interest u/s 244A - refund being the excess of tax liability on the assessed income over the taxes paid under section 143(1) - AO did not allow interest u/s 244A(1)(a) on the amount as the refund was less than 10% of the tax determined u/s 254 r.w.s. 143(3) - HELD THAT:- While interpreting tax statute, the function of the court of law is not to give words in the statute a strained and unnatural meaning to cover and extent its applicability to the areas not intended to be covered under the said statute. Vidarbha Irrigation Devs. Corpn. vs. ACIT [2004 (7) TMI 67 - BOMBAY HIGH COURT] It is not permissible to construe any provision of a statute, much less a taxing provision, by reading into it more words than its contains. CIT vs. Vadilal Lallubhai [1972 (8) TMI 134 - SUPREME COURT]. Literal construction means that there is no room for any intendment. Nothing is to be read in, nothing is to be implied. Hence, we hold that the proviso to Clause (a) of Sub- Section (1) of Section 244A is applicable and has to be considered for computational purpose of the interest computable for the refund payable u/s 244A(1)(a). Whether interest is payable on the self-assessment tax paid by the assessee or not? - AO is hereby directed to pay interest on the refund eligible in accordance with the proviso to Section 244A(1)(a) with regard to the advance tax paid. With regard to the self-assessment tax paid, we hereby hold that the assessee is eligible for interest on the total amount of refund in accordance with provision of Section 244A(1)(b) as the bar contend in proviso to Clause (a) to Section 244A(1) is not applicable to the cases (A.Ys. 1999-2000 and 1994-95) before us. The ground no.3 of the assessee is treated as allowed. Computation of interest u/s 244A(1)(a) and Sec. 244A(1)(b) as well as Sec. 234A, Sec. 234B & Sec. 234C, we hereby hold that the rule of collection of interest on the taxes due from the taxpayer would be applicable in the comparable way while paying interest to taxpayer on the refund. Assessee is eligible for interest Amount of ₹ 30,00,00,000/- paid on 31.01.2003 is eligible for interest for the month of January. Amount of ₹ 25,00,00,000/- paid on 28.02.2003 is eligible for interest for the month of February.
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