Madras H.C : the assessee was entitled to interest under s. 244(1A) of the IT Act, 1961, on the refund due to excess payment of tax under s. 140A(1) of the Act

High Court Of Madras

CIT vs. Ashok Leyland Ltd.

Section 244(1A)

R. Jayasimha Babu and K. Gnanaprakasam, JJ.

TC No. 360 of 1995

21st February, 2001

Counsel Appeared

Mrs. Chitra Venkataraman, for the Revenue : P.P.S. Janarthana Raja, for the Assessee

JUDGMENT

K. GNANAPRAKASAM, J.:

At the instance of the Revenue, the following question has been referred to us, i.e., “Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was entitled to interest under s. 244(1A) of the IT Act, 1961, on the refund due to excess payment of tax under s. 140A(1) of the Act ?”

2. A question similar to this came up for consideration before the apex Court in the case of Modi Industries Ltd. vs. CIT (1995) 128 CTR (SC) 361 : (1995) 216 ITR 759 (SC) : TC S4.369, wherein it was held that : “… if any refund was payable pursuant to the order of regular assessment, that had to be paid in accordance with the provisions of s. 243 of Chapter XIX of the Act. If the payment was delayed beyond the period mentioned in s. 243 of the Act, interest had to be paid from the date of expiry of the aforesaid period to the date of the refund order.”

As such, the assessee is entitled to interest and the question referred to us is answered in favour of the assessee and against the Revenue.

[Citation : 252 ITR 542]

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