Case Law Details
Brief of the Case
Calcutta High Court held that clause (1)(b) of Section 244A is residual in nature which prescribes interest on refund from the date of payment of tax in cases which are not covered by Section 244A(1)(a). Necessarily, it will cover interest on refund of excess self-assessment tax paid by the assessee. The explanation to section 244A (1)(b) would have no application since the tax in question was not paid consequent to any notice of demand u/s. 156, rather it was paid self assessment tax u/s 140A. Hence according to mandate of section 244A(1)(b), interest is payable on refund of excess self assessment tax, from the date of payment of such tax to the date when the refund is granted.
Facts of the Case
The assessee paid tax in respect of the relevant assessment years including self-assessment tax u/s.140A of the Act. Subsequently, the assessment u/s. 143(3) was completed for both the assessment years 1992-93and 1993-94 and certain additions were made. The assessee preferred an appeal before the CIT (A) who allowed certain relief resulting in an order for refund. While giving effect to the said order of the learned CIT (A), an order for refund along with interest was allowed to the assessee for both the years under consideration.
Subsequently, the assessing officer issued a notice u/s.154 and the interest previously allowed u/s.244A (1)(b) on the refund of excess self assessment tax was withdrawn. In his order u/s.154 the assessing officer held that interest u/s.244A(1)(a) is not payable on refund of excess self assessment tax whereas s.244A(1)(b) is not attracted in view of the explanation appended thereto.
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