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TMI Blog2003 (3) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 244A/other relevant provisions of the Income-tax Act on the amount of self-assessment tax paid, which became refundable under section 143(3)/250 as per provisions of Income-tax Act from the date of payment of such tax." 3. Briefly stated the facts of the case are that the assessee became entitled to substantial refund on account of the appellate order. Refund also included certain amounts which had been paid as self-assessment tax. At the time of giving effect to the apellate order, the ld. Assessing Officer granted the interest on the fund of self-assessment tax from1-4-1997to June 1997 because the assessment was finalized in March 1997. The assessee claimed that the interest on self-assessment tax should have been granted from2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in CIT v. Narinder Doshi [2002] 254 ITR 606 (SC) and CIT v. Goodyear India Ltd. [2001] 249 ITR 527 (Delhi) were cited in support of this proposition. A further contention was raised on behalf of the assessee that the main clause (b) to this section entitles assessee to interest from the date of payment of tax to the date on which the refund is actually granted. It was stated that the Explanation could in no way curtail the benefit granted by the substantive section. Relying on the decision of Hon'ble Supreme Court in the case of S. Sundaram Pillai v. V.R. Pattabiraman AIR 1985 SC 582 it was stated that the Explanation cannot take away a statutory right with which any person under statute has been clothed. It was stated that the said decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s entitled to interest on the self-assessment tax from the date of payment of such tax. It is the common ground of both the sides that clause (a) of section 244A(1) is not applicable to the facts of the present case and the relevant applicable clause is (b). It would be relevant at this stage to extract the provisions of section 244A(1)(b) as under: (b) in any other case, such interest shall be calculated at the rate of [two third per cent] for every month or part of a month comprised in the period or periods from the date or, as the case may be, date of payment of the tax or penalty to the date on which the relevant is granted. Explanation: For the purpose of this clause, 'date of payment of tax or penalty' means the date on and from whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -assessment tax does not appear anywhere in the notice of demand. Form No. 7 read with Rule 15 of the Income-tax Rules, 1962 clearly shows that the notice of demand is issued for a particular assessment year demanding a particular sum determined to be payable by the assessee. In view of the exclusive definition to the expression "date of payment of tax or penalty" for the purpose of clause (b) of section 244A(1) it becomes abundantly clear that the self-assessment tax is not contemplated to be covered under this clause and only the refund arising out of the payments made on account of post-assessment taxes are included in its scope. Had the intention of the Legislature been to allow interest on self-assessment tax from the date of its payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (b) refers to the calculation of interest from the date of payment of tax or penalty but what is contemplated as the "date of payment of tax or penalty" has been elaborated further by the statute by insertion of the Explanation to this section which contains an exclusive definition of this expression which is relevant only for this clause. The benefit conferred by clause (b) is not an absolute benefit. We find that the Explanation in this section is merely explaining the meaning of an expression which in no way is curtailing the scope of the main section. When a particular meaning is assigned to an expression used in the section, it would be wholly unfair and unjustified in not considering that meaning and reading the section in isolation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. AR is the case of Hooghly Mills Co. Ltd., also does not advance his case any further for the reason that the subject matter of dispute in that case was entirely different. Though in that case it was held that the assessee would be entitled to interest under section 244A(1) on refund of excess payment of self-assessment tax along with the tax deducted at source, it nowhere laid down that the starting point for the grant of interest on the self-assessment tax would be the date on which such self-assessment tax was paid, which is the issue under consideration. On the contrary the decision cited by the ld. DR in Dhanvi Trading & Investment (P.) Ltd.'s case is a direct authority on the issue under dispute in which relying upon the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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