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| The Tax Publishers2020 TaxPub(DT) 3416 (Del-Trib) : (2020) 185 ITD 0109 : (2020) 207 TTJ 0641 INCOME TAX ACT, 1961
Section 244A
For the purpose of embargo of 10% of the tax determined in accordance with provisions of section 244A(1)(a), it is clear from the provision of the said section that the self-assessment tax does not form a part of the embargo as self-assessment tax falls under sub-section (b) of section 244A(1).
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Refund - Interest - Interest on fefund of self-assessment tax -
Assessee claimed refund of Rs. 201 crores comprising of advance tax, TDS and self assessment tax of Rs. 14 crores and Rs. 18 crores, the tax paid on different dates. AO did not allow interest under section 244A(1)(a) on the amount of Rs. 14 crores as refund was less than 10% of tax determined under section 254 read with section 143(3). Held: Section 244A does not deny payment of interest in case of refund of amount paid under section 140A. On the contrary, clause-(b) to section 244A(1) being a residuary clause necessarily includes payment made under section 140A. Since, there is no proviso attached to sub-Clause (b), embargo of 10% is not applicable for calculation of interest for refund arising out of payment of self-assessment tax. Accordingly, assessee was eligible for interest on the total amount of refund in accordance with provision of section 244A(1)(b) as the bar contend in proviso to clause (a) to section 244A(1) was not applicable to assessee's case assessment years 1999-2000 and 1994-95.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 1994-95 & 1999-2000
IN THE ITAT, DELHI 'E', NEW DELHI BENCH
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