INCOME TAX ACT, 1961

Section 244A

Refund - Interest under section 244A - Refund arising on excess payment of self-assessment tax - Allowability of

Issue under consideration was whether Tribunal was justified in holding that interest under section 244A was to be allowed on self-assessment tax refunded to assessee without appreciating the fact that the self-assessment tax had been voluntarily paid by the assessee and not pursuant to a notice of demand issued under section 156. Held: When an assessee pays tax either as advance tax or on self-assessment, it is paid to discharge an obligation under the Act. Not complying with the obligation under the Act visits consequences to an assessee just as non compliance of orders passed by authorities under the Act would. Thus, there is no voluntary payment of tax on self assessment as contended by Revenue. Further, it is settled position that assessee is entitled to interest under section 244A on refund of excess self-assessment tax paid by it. Accordingly, the Tribunal was justified in holding that interest under section 244A was to be allowed on self-assessment tax refunded to assessee.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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