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Section 234D of the Income-tax Act, 1961 - Interest on excess refund - Assessment year 2001-02 - Where regular assessment was completed on 30-3-2004, i.e., after amended provisions of section 234D came into operation, assessee was liable to pay interest on refunded amount under section 234D [In favour of revenue] The return of assessee for assessment year 2001-02 was processed under section 143(1) on 30-11-2002 and assessment order under section 143(3) was passed on 30-3-2004. The Assessing Officer, while giving effect to the order, levied interest under section 234D. The assessee claimed that since section 234D had been introduced with effect from 1-6-2003 impugned interest was liable to be set aside. Held that the assessment was completed only on 30-3-2004, the date on which the order of assessment came to be passed. But, the amended provision of section 234D came into force with effect from 1-6-2003. When the regular assessment was completed after the amended provision of law came into operation, the assessee was liable to pay interest on the refunded amount, as contemplated under section 234D. It is not the year of assessment that falls for consideration in such circumstances, but the date on which the regular assessment order has been passed. Therefore, the order passed by the Assessing Officer, levying interest on the amount of refund, was well within the parameters of law. CASES REFERRED TO CIT v. South Indian Bank Ltd. [2012] 340 ITR 574 (Ker.) (para 10), CIT v. Kerla Chemicals & Proteins Ltd.[2010] 323 ITR 584 (Ker.) (para 10), Sree Karpagambal Mills Ltd. v. CIT [1999] 238 ITR 842 (Mad.) (para 11), CIT v. S.A. Wahab [1990] 182 ITR 464/48 Taxman 362 (Ker.) (para 12), Yuvaraj International v. CIT[2000] 244 ITR 641/[1999] 107 Taxman 22 (Mad.) (para 13), Karimtharuvi Tea Estate Ltd. v. State of Kerala[1966] 60 ITR 262 (SC) (para 14) and J.K. Synthetics Ltd. v. CTO [1994] 94 STC 422 (SC) (para 15). K. Subramaniam for the Appellant. Ferrokh V. Irani and O.R. Santhanakrishnan for the Respondent. JUDGMENT Elipe Dharma Rao, J. - This tax case appeal has been filed against the order dated March 29, 2007, passed by the Income-tax Appellate Tribunal, Madras…

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