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[2007] 294 ITR 438 [2008] 166 TAXMAN 132 (MAD.) HIGH COURT OF MADRAS Commissioner of Income-tax * v. Cholamandalam Investment & Finance Co. Ltd. P.D. DINAKARAN AND P.P.S. JANARTHANA RAJA, JJ. TAX CASE (APPEAL) NO. 430 OF 2007 JUNE 6, 2007 Section 244A, read with section 140A, of the Income-tax Act, 1961 - Refunds - Interest on - Assessment year 1997-98 - Whether assessee is entitled to interest under section 244A when refund has arisen on account of payment of self-assessment tax - Held, yes FACTS In a rectification proceeding made under section 154, the Assessing Officer withdrew the interest granted under section 244A on the ground that the refund arose on account of payment of tax on self-assessment made under section 140A. The Commissioner (Appeals), however, allowed the interest on refund. The Tribunal confirmed the order of the Commissioner (Appeals). On appeal : HELD Even though the short title to section 140A reads as self-assessment, yet the charging phrase employed under section 140A, namely, 'where any tax is payable on the basis of any return required to be furnished under section 115WD or section 115WH or section 139 or section 142 or section 148 or section 153A, as the case may be, the assessee shall be liable to pay such tax together with interest payable under any provision of the Act for any delay in furnishing 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 (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 provided under section 244A(1)(a). [Para 5.2] Proviso to section 244A(1)(a ) makes it clear that no interest shall be payable if the amount of refund is less than 10 per cent on regular assessment with regard to the refund of advance tax paid under section 115WJ in respect of fringe benefits; (ii) tax collected at source under section 206C; and (iii) advance tax or any tax treated as paid under section 199. But, with respect to other tax as per section 244A(1)(b), the interest shall…

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