Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 971 - HC - Income TaxInterest under section 244A(1)(b) - ITAT treating the tax paid on self-assessment as prepaid tax for the purpose of interest - Held that:- In so far as the nature of payment of tax is concerned, the tax deducted at source, advance tax and also tax paid by way of self-assessment, after its adjustment in the tax liability of the assessee on regular assessment loses its original character and becomes tax paid in pursuance of the liability. Once that is so, it cannot be held that the assessee is only entitled to interest under section 244A(1)(b) on tax deducted at source or advance tax and not on self-assessment tax paid under section 140A of the Act which was found to be paid in excess. The assessee shall be entitled to interest under section 244A(1)(b) of the Act on the refund of self-assessment tax as well. From the above, it, therefore, follows that tax paid under section 140A is also taken as paid in pursuance of an assessment after the completion of assessment. Thus Tribunal was right in directing to allow interest under section 244A(1)(b) by treating the tax paid on self-assessment as prepaid tax for the purpose - Decided in favour of assessee.
|