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2013 (9) TMI 478 - AT - Income TaxInterest u/s 244A(b) - Rectification of error in assessment done - whether interest u/s 244A is to be paid on on self-assessment tax paid ignoring the Explanation section 244A(b) - CIT allowed interest on refund - Held that:- Even though the short title to s. 140A reads as self-assessment, the charging phrase employed in s. 140A, namely, where any tax is payable on the basis of any return required to be furnished under s. 115WD or s. 115WH or s. 139 or s. 142 or s. 148 or s. 153A, as the case may be, the assessee shall be liable to pay such tax together with interest payable under any provision of this Act for any delay in furnishing the return, makes it clear that there is no difference between : (i) the tax paid under s. 115W], which deals with advance tax in respect of fringe benefits; or (ii) the tax collected at source under s. 206C; or (iii) any tax paid by way of advance tax or any tax treated as paid under s. 199, which deals with credit for tax deducted, which are provided under s. 244A(1)(a). That apart, the law is well-settled that even for the refund of tax paid under s. 140A on self-assessment, the assessee is entitled to interest. It is also trite law that wherever the assessee is entitled to refund, there is a statutory liability on the Revenue to pay interest on such refund on general principles to pay interest on sums wrongfully retained - following decision of CIT v/s Cholamandalam Investment 7 Finance Co. Ltd. [2007 (6) TMI 69 - HIGH COURT , MADRAS] - Decided against Revenue.
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