TMI Blog2015 (12) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... computation of interest under clause (b) is the date of payment. The provisions under section 244A do not distinguish the cases where payment is made on assessment under section 140A. The explanation to section 244A does not really talk about the entitlement or disentitlement. The explanation, which we have extracted above, would show that the expression "date of payment of tax or penalty" means the date on and from which the amount of taxes or penalty specified in the notice of demand issued under section 156 is paid in excess. The above explanation does not give room for an interpretation that if a person has paid money otherwise than by way of demand under section 156, he is not entitled to interest on refund under section 244A. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 20,00,000/- on 29.6.1991, as tax due under section 140A. This amount actually became refundable due to the appellate proceedings. Therefore, the appellant claimed the refund of the said amount of ₹ 20,00,000/- together with interest under section 244A. The assessing officer granted refund of ₹ 20,23,272/-. 6. Similarly, the assessing officer granted relief under section 80 HHC only partially. Therefore, the non-payment of interest as well as the disallowance of a portion of the claim under section 80 HHC, became the subject matter of an appeal before the Commissioner. 7. The Commissioner of Income Tax (Appeals), by order dated 4.10.2001, held that the assessee is entitled to interest under section 244A. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer himself treated the payment as Advance Tax in the order passed under Section 143(1)(a), 143(3) and 154? 2. Whether the Income Tax Appellate Tribunal is right in law in negativing the alternative claim for interest even if the tax paid is treated by way of self-assessment tax under Section 140A got adjusted against the assessed tax thereby pertaining the character of tax paid pursuance of assessment? 3. Whether the Income Tax Appellate Tribunal is right in law in ignoring the object of the scheme of section 244A and negativing the interest payment when the appellant claimed the interest on self assessment tax and interest on interest on the refund due? 4. Whether the Income Tax Tribunal is right in law in holding that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation.-For the purposes of this clause, date of payment of tax or penalty means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 156 is paid in excess of such demand. 12. A careful look at sub-section (1) of section 244A would reveal that it has three parts. The first part deals with the entitlement of a person to interest whenever he is due to get a refund from the Department. The second part relates to the method of computation of such interest. There are two methods of computation of interest, one provided in clause (a) and another provided in clause (b). In the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n pursuance of any order of assessment or not as laid down in section 244(1A) since the amount refundable has been paid before completion of assessment. Further, the Revenue has contended that the assessee is not entitled to interest on this amount under section 244A(1)(a) also because the sum does not represent advance tax or TDS which are covered under that section. Similarly, it has been contended that the assessee's case also does not fall under section 244A(1)(b) also since coupled with the section thereto the sum does not represent amount of tax specified in the notice of demand. 15. But, as we have pointed out, the entitlement of a person to interest on the refund arises out of substantive part of sub-section (1) of section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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