Interest on Refund of Self Assessment Tax

Even refund of excess self-assessment tax paid by assessee would be entitled to interest

[2015] 57 taxmann.com 283 (Punjab & Haryana)

HIGH COURT OF PUNJAB AND HARYANA

Commissioner of Income-tax

v.

Punjab Chemical & Crop Protection Ltd

Section 244A, read with sections 140A and 154, of the Income-tax Act, 1961 - Refunds - Interest on (Self assessment tax) - Assessment year 1989-90 - Whether tax deducted at source, advance tax and also tax paid by way of self assessment, after its adjustment against tax liability of assessee on a regular assessment, loses its original character and becomes tax paid in pursuance of liability - Held, yes - Whether therefore, it could not be held that assessee was only entitled to interest on tax deducted at source or advance tax but not on self assessment tax paid under section 140A which was found to be paid in excess - Held, yes [Para 11][In favour of assessee]