ITAT : Allows interest u/s. 244A on refund of interest u/s. 234B ; Narrow ‘tax’ definition u/s. 2(43) inapplicable

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