Section 244A(1)(b) — the law in short
What the courts have decided on section 244A(1)(b), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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UOI v Tata Chemicals Ltd
Supreme CourtHelps taxpayer
I deducted tax under s.195 because the officer told me to, and the CIT(A) has now held it was not deductible. Do I get interest on the refund, or only the tax back?
Yes, interest as well. The resident deductor is entitled not only to the refund of the tax deposited under s.195(2) but to have it refunded with interest from the date of payment of the tax. The Revenue was the appellant and its appeals were dismissed. The CBDT has since accepted the position by circular.
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CIT, Kolkata-I v Birla Corporation Ltd
High CourtHelps taxpayerHigh Courts differ
Part of my refund is self-assessment tax I paid under s.140A. The officer says no interest is payable on that. Is he right?
No. The Calcutta High Court held that s.244A(1)(b) is a residuary clause that covers a refund of excess self-assessment tax paid under s.140A, and that interest runs from the date the tax was paid to the date the refund is granted — a starting point since narrowed by s.244A(1)(aa) for periods from 1 June 2016. The Explanation to clause (b) does not stand in the way, because it operates only where the tax was paid pursuant to a notice of demand under s.156.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.