COMMISSIONER OF INCOME TAX Vs. VIJAYA BANK

JUDGEMENT

(1.) The Appeal is admitted to consider the following substantial question of law: When the assesses pays tax subsequent to the 1st day of April of as assessment year but before or along with the date of return, if that tax is ordered to be refunded, what is the date from which interest is payable on such refund under Section 244-A?

(2.) The Revenue has preferred this appeal challenging the order passed by the Tribunal which has granted interest on the amount of tax refunded from the date of payment of the tax, on the ground that the said tax was paid on self-assessment.

(3.) The Assessee is a Nationalised Bank. It filed return of income on 24.10.2002 declaring book profits under Section 113 JB amounting to Rs. 105,47,01,155/-The Assessing Officer completed the asssessment under Section 143(3) of the Income Tax Act (hereinafter referred to as the 'Act'), on 25.03.2003. The assesses preferred an appeal against the said order before the Appellate Commissioner, who partly allowed the appeal by its order dated 19.03.2004. The said order attained finality. The Assessing Officer, while giving effect to the order of the Appellate Commissioner, did not grant interest under Section 244A on the self-assessment tax paid by the Assessee amounting to Rs. 15,50,00,000/-. The representations on behalf of the Bank were rejected by an order dated 23.11.2006 on the ground that there is no provision in the Act for allowing interest under Section 244A on self-assessment tax. The Assessee preferred an appeal to the Appellate Commissioner. The appeal was allowed, directing the Assessing Officer to grant interest under Section 244A on the refund arising as a result of Appellate Commissioners order on the payment of self-assessment tax paid under Section 140A. In terms of the aforesaid order, the Assessing Officer granted interest on self-assessment tax paid from the date of regular assessment, as against the claim of the asaessee from the date on which the self-assessment tax was paid. Aggrieved by the order of the Assessing Officer, the Assessee preferred an appeal to the Appellate Commissioner. The appeal was allowed, and the Appellate Commissioner directed payment of interest under Section 244A from the date on which the self-assessment tax was paid by the Assessee. Aggrieved by the said order, the revenue preferred an appeal to the Tribunal, The Tribunal, relying on the Circular No.