Ahmedabad ITAT upholds
CIT(A)’s order and rules in favour of assessee, grants Sec. 244A interest
on the refund of interest paid u/s. 234B [relating to advance tax default]
for AY 2007-08; As per Income Tax computation form (‘ITNS 150’) prepared
by AO, interest u/s. 234B was originally computed at Rs. 4 cr., which was
subsequently reduced to Rs. 1.41 cr. due to reversal of certain additions in
appeal proceedings, rejects Revenue’s stand that Sec. 244A only provides for
interest on refund of tax or penalty amount and not the interest amount; ITAT
upholds CIT(A)’s reliance on Ahmedabad ITAT ruling in Alembic Glass Industries
Ltd. wherein it was held that in the context of Sec. 244A(1)(b), the expression
'tax' would include interest also and the definition of tax in Sec. 2(43)
meaning 'income-tax' may not be applicable in the context of Sec. 244A(1); ITAT
holds that the expression ‘in any other case’ occurring in Sec. 244A(1)(b)
would include interest on an amount of refund resulted from reversal of excess
interest charged u/s. 234B, thus concludes that “the assessee would be
entitled the claim u/s. 244A from the original date”. :ITAT
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