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2016 (8) TMI 67 - ITAT CHENNAI

2016 (8) TMI 67 - ITAT CHENNAI - TMI - Granting of interest u/s.244A on payment of self-assessment tax - Held that:- An assessee is entitled to compensation by way of interest for the delay in the payment of amounts lawfully due to the assessee which are with held wrongly and contrary to law. As decided in CIT Vs.Cholamandalam Investment & Finance Co. Ltd. [2007 (6) TMI 69 - HIGH COURT , MADRAS ] the assessee is entitle to compensation by way of interest for delay in refund - Decided in favour o .....

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of interest u/s.244A on payment of self-assessment tax. 3. The brief facts of the case are that the assessee is a Director of SSI Limited and filed its return of income on 29.09.2008 admitting income of ₹ 94,65,23,041/- and paid taxed of ₹ 17,10,58,258/-. Subsequently the assessee filed a revised return on 11.12.2008within the time allowed u/s.139(5) of the Act declaring income of ₹ 80,14,02,042/- on which the tax payable amounting to ₹ 11,69,58,702/- resulting in a refu .....

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due to excess tax paid under self-assessment tax. The Ld.CIT(A) placed reliance on the jurisdictional High Court in the case of CIT Vs.Cholamandalam Investment & Finance Co. Ltd. reported in [2008] 166 Taxmann 132(Mad.) 5. We have heard both the parties and perused the material on record. This issue came up for consideration before the jurisdictional High Court in the case of CIT Vs.Cholamandalam Investment & Finance Co. Ltd. ( 294 ITR 438) wherein lordships held as follows:- 5. Before p .....

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provision of this Act, the assessee shall be liable to pay such tax together with interest pay able under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest. Explanation.-Where the amount paid by the assessee under this sub-section falls short of the aggregate of the tax and interest as aforesaid, the amount so paid shall f .....

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d in the return as reduced by the advance tax, paid, if any. (1B) For the purposes of sub-section (1), interest payable under section 234B shall be computed on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax. Page No : 0441 Explanation.-For the purposes of this sub-section, ' assessed tax' means the tax on the total income as declared in the return as reduced by the amount of tax deducted or collected .....

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If any assessee fails to pay the whole or any part of such tax or interest or both in accordance with the provisions of sub-section (1), he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax or interest or both remaining unpaid, and all the provisions of this Act shall apply accordingly." "244A. Interest on refunds.-(1) Where refund of any amount becomes due to the assessee under this Act, he shall, subjec .....

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of a month comprised in the period from the 1st day of April of the assessment year to the date on which the refund is granted : Provided that no interest shall be payable if the amount of refund is less than ten per cent. of the tax as determined under sub-section (1) of section 143 or on regular assessment ; (b) in any other case, such interest shall be calculated at the rate of one-half per cent. for every month or part of a month comprised in the period or periods from the date or, as the ca .....

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e delay so attributable to him shall be excluded from the period for which interest is payable, and where any question arises as to the period to be excluded, it shall be decided by the Chief Com missioner or Commissioner whose decision thereon shall be final. (3) Where, as a result of an order under sub-section (3) of section 115WE or section 115WF or section 115WG or subsection (3) of sec tion 143 or section 144 or section 147 or section 154 or section 155 or section 250 or section 254 or sect .....

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iring him to pay such amount ; and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accord ingly. (4) The provisions of this section shall apply in respect of assess ments for the assessment year commencing on the 1st day of April, 1989, and subsequent assessment years : Provided that in respect of assessment of fringe benefits, the pro visions of this sub-section shall have effect as if for the figures ' 1989', the figures .....

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rnishing the return", makes it clear that there is no difference between : (i) the tax paid under section 115WJ, which deals with advance tax in respect of fringe benefits ; or (ii) the tax collected at source under section 206C ; or Page No : 0443 (iii) any tax paid by way of advance tax or any tax treated as paid under section 199, which deals with credit for tax deducted, which are pro vided under section 244A(1)(a). 7. The proviso to section 244A(1)(a) makes it clear that no interest sh .....

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