Law:

Section:

Section 244A of the Income-tax Act, 1961 - Refunds - Interest on - Assessment year 1994-95 - Whether when refund of tax becomes payable as a result of order passed in an appeal or other proceedings under Act, this refund is to be given along with interest, which is to be calculated as per section 244A - Held, yes - Whether if said interest is paid along with excess tax, no further payment is to be made and it is only when excess amount of tax is refunded but interest is not refunded therewith, retention of interest amount would be unjustified and interest on interest would also become payable - Held, yes FACTS The assessee had filed its return of income showing a particular income. Tax payable had been paid in the form of TDS and advance tax. On the basis of income-tax return filed, tax payable was less than what was already paid in the form of TDS and advance tax and, therefore, refund was claimed. An intimation under section 143(1)(a) had been passed and refund, along with interest, under section 244A had been issued to the assessee. It was paid within the time prescribed under the Act. Subsequently, the assessment was completed under section 143(3) in which various additions were made. Demand was raised on the basis of those additions and the tax, as demanded, was paid by the assessee in instalments. The assessee, however, preferred an appeal thereagainst before the Commissioner (Appeals) who deleted many additions, thereby reducing the demand made in the assessment order. Even at that time certain demands were due which were paid by the assessee in instalments. The assessee filed further appeal before the Tribunal. On that appeal, the Tribunal granted certain reliefs. Though after the order of the Commissioner (Appeals) the tax demand was reduced, but even as per that order, some more amounts were still payable as the assessee was paying the tax demanded in instalments as a result of assessment order. However, after the orders of the Tribunal, the assessee became entitled to refunds. These refunds were granted to the assessee along with interest, after giving effect to the orders of the Tribunal. All these payments towards refund, along with interest, were…

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