TATA MOTOS LTD, MUMBAI V. ITO (IT) (TDS) 2, MUMBAI

ITA 8925/MUM/2010

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5854 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 03-03-2014
• Assessment Year: 1998-1999
• Appeal Filed On: 21-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GIRIJA DAYAL
• Assessee Lawyers: DINESH VYAS
• Section: 143(3); 244A; 201(1); 263; 154

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , , BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEM BER . / ITA NO. 8925 /MUM./201 0 ( / ASSESSMENT YEAR : 1998 99 ) TATA MOTORS LIMITED BOMBAY HOUSE, 24 HOMI MODY STREET HUTATMA CHOWK, MUMBAI 400 001 .. / APPELLANT V/S INCOME TAX OFFICER (I.T) (TDS ) 2, SCINDIA HOUSE BILLARD PIER, N.M. ROAD MUMBAI 400 038 .... / RESPONDENT ./ PERMANENT ACCOUNT NUMBER AAAAC T2727Q / ASSESSEE BY : MR. DINESH VYAS / REVENUE BY : MR. GIRIJA DAYAL / DATE OF HEARING 10 .0 3 .201 4 / DATE OF ORDE R 28.03.2014 / ORDER , / PER AMIT SHUKLA , J.M. THE AFORESAID APPEAL HA S BEEN PREFERRED BY THE ASSESSEE C HALLENGING THE IMPUGNED ORDER DATED 1 1 TH OCTOBER 201 0, FOR THE ASSESSMENT YEAR 1998 99 , PASSED BY THE LEARNED COMMISSIONER (APPEALS) X I, MUMBAI. THE SOLE DISPUTE IN THIS APPEAL IS, WHETHER OR NOT THE LEARNED COMMISSIONER (APPEALS) WAS JUSTIFIED IN HOLDING THAT TATA MOTORS LIMITED 2 THE ASSESSEE IS NOT ENTITLED TO INTEREST UNDER SECTION 244A OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ) ON THE REFUND OF TAXES PAID, IN PURSUANCE OF THE ORDER PASSED UNDER SECTION 195 OF THE ACT BY THE ASSESSING OFFICER. 2 . BRIEF FACTS, AS NOTED BY THE LEARNED COMMISSIONER (APPEALS), ARE THAT THE ASSESSEE WAS REQUIRED TO DEPOSIT ` 14.01 CRORES IN PURSUANCE OF THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 195, 201(1) AND 201(1)(A), ON THE REMITTANCES TOWARDS THE FEE PAID ON ACCOUNT OF SER VICES RENDERED BY THE LEAD MANAGERS. THE SAID ORDER, BY WHICH THE ASSESSEE WAS REQUIRED TO PAY THE DEMAND STOOD DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL, VIDE ORDER DATED 23 RD JANUARY 2009 AND THE ENTIRE DEMAND WAS CANCELLED. AS A RESULT OF THIS, THE TDS AMOUNT DEPOSITED BY THE COMPANY AMOUNTING TO ` 3,38,56,547, BEC A ME REFUNDABLE TO THE ASSESSEE. HOWEVER, THE ASSESSING OFFICER, WHILE GIVING EFFECT TO THE TRIBUNALS ORDER ASSESSED A COMPUTATION FORM WORKING OUT THE REFUND BUT DENIED INTEREST UNDER SECTION 244A. AGGRIEVED BY THE DENIAL OF INTEREST UNDER SECTION 244A, THE ASSESSEE PREFERRED FIRST APPEAL BEFORE THE LEARNED COMMISSIONER (APPEALS) , WHO HELD THAT, FIRST OF ALL, THE ORDER UNDER SECTION 195 PASSED BY THE ASSESSING OFFICER IS DIFFERENT FROM THE ASSESSMENT ORDER UNDER SECTION 143(3) , WHEREIN THE ISSUE OF TAXABILITY OF RECEIPT CAN BE DECIDED BY THE ASSESSING OFFICER AND NOT BY ANY ORDER PASSED UNDER SECTION 195 . HE FURTHER HELD THAT THE TAX DEDUCTED AT SOURCE CAN BE VIEWED MERELY AS A SECURITY FOR LIKELIHOOD OF TAX DEMAND IN FUTURE AND THE SAME CANNOT BE TREATED AS TAX IN VIEW OF THE CBDT CIRCULAR NO.7 OF 2007 DATED 23 RD OCTOBER 2007, WHICH STATED AS UNDER: REFUND TO THE PERSON MAKING PAYMENT UNDER SECTION 195 IS BEING ALLOWED AS INCOME DOE S NOT ACCRUE TO THE NON RESIDENT OR IF THE INCOME IS ACCRUING NO TAX IS DUE OR TAX IS DUE AT A LESSER RATE. THE AMOUNT PAID INTO THE GOVERNMENT ACCOUNT IN SUCH TATA MOTORS LIMITED 3 CASES TO THAT EXTENT, IS NO LONGER TAX. IN VIEW OF THIS, NO INTEREST UNDER SECTION 244A IS ADM ISSIBLE ON REFUNDS TO BE GRANTED IN ACCORDANCE WITH THIS CIRCULAR OR ON THE REFUNDS ALREADY GRANTED IN ACCORDANCE WITH THE CIRCULAR NO.769 OR CIRCULAR NO.790. 3 . IN VIEW OF THE AFORESAID CIRCULAR, THE LEARNED COMMISSIONER (APPEALS) HELD THAT THERE IS NO INF IRMITY IN THE ORDER OF THE ASSESSING OFFICER FOR NOT GRANTING ANY INTEREST UNDER SECTION 244A. HE FURTHER HELD THAT INTEREST ON REFUND UNDER SECTION 244A IS ADMISSIBLE ONLY ON THE AMOUNT OF EXCESS TAX PAID OR PENALTY BY THE ASSESSEE , H OWEVER, WHEN THE AMOU NT PAID BY THE ASSESSEE IS NOT A TAX THEN INTEREST ON REFUND OF 244A IS NOT ADMISSIBLE. 4 . BEFORE US, THE LEARNED SENIOR COUNSEL, MR. DINESH VYAS, ON BEHALF OF THE ASSESSEE, SUBMITTED THAT THIS ISSUE OF GRANTING OF INTEREST UNDER SECTION 244A IN RELATION TO THE TDS DEDUCTED IN PURSUANCE OF THE ORDER PASSED UNDER SECTION 195 HAD COME UP FOR CONSIDERATION BEFORE THE TRIBUNAL IN SEVERAL CASES AND NOW IT IS A COVERED ISSUE . COPIES OF SUCH TRIBUNAL DECISIONS WERE FILED BEFORE US. I ) NEO SPORTS BROADCAST V/S DDIT, (T A NO.4649/MUM./2010, ORDER DATED 30 TH JANUARY 2013; II ) SATELLITE TELEVISION ASIAN REGION V/S DDIT, ITA NO.8639 8641/MUM./2010, ORDER DATED 6 TH MARCH 2013; III ) ACIT V/S TAJ T.V. LTD., ITA NO.413/MUM./2008 ORDER DATED 28 TH JANUARY 2011; IV ) TATA CHEMICALS LTD. V/S D CIT, [2007] 16 SOT 481 (MUM.); V ) DDIT V/S ST AR CRUISES (I) TRAVEL SERVICES P. LTD., ITA NO.6498 & 6500/MUM./2006 DATED 24 TH MARCH 2009. 5 . THUS, HE SUBMITTED THAT THE AFORESAID ISSUE IS SQUARELY COVERED BY VARIOUS DECISIONS OF THE CO ORDINATE BENCH OF THE TRIBUNAL AND THE TATA MOTORS LIMITED 4 REVENUE SHOULD BE DIRECTED TO GR ANT INTEREST UNDER SECTION 244A, ON THE REFUND OF TDS AMOUNT. 6 . BEFORE US, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE CBDT CIRCULAR, AS REFERRED TO BY THE LEARNED COMMISSIONER (APPEALS), IS QU ITE RELEVANT WHEREIN THE CBDT HAS GIVEN CATEGORICAL DIRECTION THAT NO INTEREST UNDER SECTION 244A IS ADMISSIBLE ON REFUND WHICH ARE ARISING OUT OF PAYMENT MADE UNDER SECTION 195, AS IT IS NOT A TAX IN THE HANDS OF THE DEDUCTOR. HE THUS, STRONGLY RELIED UPO N THE ORDER OF THE LEARNED COMMISSIONER (APPEALS). 7 . WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS, PERUSED THE FINDINGS OF THE LEARNED COMMISSIONER (APPEALS) AND THE CASE LAWS RELIED UPON BY THE LEARNED COUNSEL. THE REVENUE, BEFORE US, HAS HEAVILY REL IED UPON THE CBDT CIRCULAR NO.7 OF 2007, WHICH AGAIN REFERS TO CIRCULAR NO.769 AND 790 ISSUED BY THE CBDT. NOW LET US ANALYSE THE RELEVANT PROVISIONS OF LAW. S ECTION 195 CAST S AN OBLIGATION UPON THE RESIDENT DEDUCTOR TO DEDUCT TAX AT THE PREVAILING RATE FOR ANY SUM WHICH IS REMITTED TO A NON RESIDENT , WHICH IS CHARGEABLE TO TAX UNDER THE PROVISIONS OF THE ACT. IF THE PERSON RESPONSIBLE FOR MAKING SUCH PAYMENTS , CONSIDER S THAT SUCH A SUM WOULD NOT BE TREATED AS INCOME CHARGEABLE TO TAX IN CASE OF RECIPIENT, HE MAY MAKE AN APPLICATION TO THE ASSESSING OFFICER UNDER SECTION 195 . IF , ON SUCH AN APPLICATION OR SUO MOTU, THE ASSESSING OFFICER DETERMINES THE AMOUNT OF TDS AND THE RATE AT WHICH THE TAX IS TO BE DEDUCTED IN PURSUANCE OF ORDER PASSED UNDER SECTION 195, THEN THE ASSESSEE HAS TO DEDUCT THE TAX. HOWEVER, IF SUCH ORDER OF THE ASSESSING OFFICER UNDER SECTION 195 IS QUASHED OR THE TAX WHICH WAS REQUIRED TO BE DEDUCTED IS CANCELLED, THEN THE DEDUCTION IS LIABLE FOR REFUND OF SUCH TAX. THIS IS BECAUSE, SECTION 2 4 0 OF THE ACT CLEARLY PROVIDES THAT, AS A RESULT OF ANY ORDER PASSED IN APPEAL OR OTHER PROCEEDINGS UNDER THE ACT, THE REFUND OF ANY AMOUNT TATA MOTORS LIMITED 5 BECOMES DUE TO THE ASSESSEE , THE ASSESSING OFFICER SHALL REFUND THE AMOUNT TO THE ASSESSEE, WITHOUT HIS CL AIM. THE PHRASE OTHER PROCEEDINGS UNDER THIS ACT IS WIDE ENOUGH TO INCLUDE THE ORDER PASSED UNDER SECTION 195 ALSO. SECTION 2 44A PROVIDES THAT WHERE THE REFUND OF ANY AMOUNT BECOMES DUE TO THE ASSESSEE UNDER THIS ACT, THE ASSESSEE IS ENTITLED TO RECEIVE IN ADDITION TO THE SAID AMOUNT OF REFUND, INTEREST , WHICH I S TO BE CALCULATED IN THE MANNER PRESCRIBED THEREIN. SECTION 244A(1)(B) FURTHER PROVIDES THAT INTEREST SHALL BE CALCULATED AT THE RATE GIVEN THEREIN IN ANY OTHER CASES ALSO, WHICH MEANS THAT IN C ASE OTHER THAN THE AMOUNTS PAID UNDER CLAUSE (A) OF SUB SECTION (1). THIS CLAUSE COVERS THE INTEREST ON THE AMOUNT OF TAX OR PENALTY SPECIFIED IN THE NOTICE O F DEMAND ISSUED UNDER SECTION 156, WHICH IS TO BE PAID IN EXCESS OF SUCH DEMAND. THIS HAS BEEN PR OVIDED IN EXPLANATION BELOW CLAUSE (B). THUS, THE LANGUAGE USED IN SECTION 244A, CLEARLY PROVIDES THAT INTEREST HAS TO BE GRANTED ON THE REFUND OF ANY AMOUNT WH ICH BECOMES DUE TO THE ASSESSEE. I T CANNOT BE CONSTRUED TO MEAN THAT SUCH AN INTEREST WILL NOT B E ALLOWED ON THE REFUND OF TDS , WHICH HAS BEEN DEDUCTED BY THE PAYER. THE SECTION PER SE DOES NOT MAKE ANY DISTINCTION ON THE TAX DETERMINED IN PURSUANCE OF ORDERS PASSED UNDER SECTION 143(3) OR THE REFUND OF TAX ON ACCOUNT OF TDS. THE SECTION 244A CLEARLY PROVIDES RIGHT TO THE ASSESSEE TO CLAIM INTEREST ON THE AMOUNT OF REFUND WHICH HAS BECOME DUE TO HIM UNDER THE PROVISIONS OF THE ACT. 8 . NOW, THIS ISSUE HAS BEEN SETTLED BY THE LATEST DECISION OF THE HON'BLE SUPREME COURT , WHEREIN S IMILAR ISSUE HAD COME UP FOR CONSIDERATION IN UNION OF INDIA V/S TATA CHEMICALS LTD. , IN BUNCH OF APPEALS IN C.A. NO. 6301 OF 2012 WITH OTHERS, VIDE JUDGMENT DATED 26 TH FEBRUARY 2014. IN THIS CASE, THE HON'BLE SUPREME COURT, AFTER ANALYZING THE PROVISIONS OF SECTION 195, 240, 244A AND 156, AND ALSO TATA MOTORS LIMITED 6 THE CBDT CIRCULAR NO.769 AND 790, AS RELIED UPON BY THE LEARNED COMMISSIONER (APPEALS), HAS CLEARLY SETTLED THE ISSUE OF GRANTING OF INTEREST UNDER SECTION 244A IN THE CASE OF RESIDENT DEDUCTOR AND HELD THAT THE RESIDENT DEDUCTOR IS ENTITLED TO INTEREST O N THE REFUND OF EXCESS DEDUCTION OR ERRONEOUS DEDUCTION OF TAX AT SOURCE UNDER SECTION 195. THE RELEVANT OBSERVATIONS AND THE FINDINGS OF THE HON'BLE SUPREME COURT ARE AS UNDER: 32. THE QUESTION BEFORE US IS, WHETHER THE RESIDENT/DEDUCTOR IS ALSO ENTITL ED TO INTEREST ON REFUND OF EXCESS DEDUCTION OR ERRONEOUS DEDUCTION OF TAX AT SOURCE UNDER SECTION 195 OF THE ACT. 33. WE WOULD BEGIN OUR DISCUSSION BY REFERRING TO CIRCULAR NO. 790, DATED 20.04.2000, ISSUED BY THE BOARD. OMITTING WHAT IS NOT NECESSARY, THE MATERIAL PORTION OF THE CIRCULAR IS EXTRACTED: ........ 6. REFUND TO THE PERSON MAKING PAYMENT UNDER SECTION 195 IS BEING ALLOWED AS INCOME DOES NOT ACCRUE TO THE NON - RESIDENT. THE AMOUNT PAID INTO THE GOVERNMENT ACCOUNT IN SUCH CASES, IS NO LONGER TAX. IN VIEW OF THIS, NO INTEREST UNDER SECTION 244A IS ADMISSIBLE ON REFUNDS TO BE GRANTED IN ACCORDANCE WITH THIS CIRCULAR OR ON THE REFUNDS ALREADY GRANTED IN ACCORDANCE WITH CIRCULAR NO. 769. 34. WHAT THE DEDUCTOR/ RESIDENT PRIMARILY CONTEND IS THAT , WHAT HAS BEEN DEPOSITED BY HIM IS A TAX, MAY BE FOR AND ON BEHALF OF NON - RESIDENT/ FOREIGN COMPANY AND WHEN THE BENEFICIAL CIRCULAR PROVIDES FOR REFUND OF TAX TO THE DEDUCTOR UNDER CERTAIN CIRCUMSTANCES, THE REFUND OF TAX SHOULD CARRY INTEREST. 35. THE CIRCULAR ISSUED BY CENTRAL BOARD OF DIRECT TAXES (THE BOARD FOR SHORT) IS BINDING ON THE DEPARTMENT. BINDING NATURE OF THE CIRCULAR IS EXPLAINED BY THIS COURT IN THE CASE OF UCO BANK V. CIT 237 ITR 889, WHEREIN THIS COURT HAS OBSERVED THAT THE CIRCULARS ISSUED BY THE BOARD IN EXERCISE OF ITS POWERS UNDER SECTION 119 OF THE ACT WOULD BE BINDING ON THE INCOME TAX AUTHORITIES EVEN IF THEY DEVIATE FROM THE PROVISIONS OF THE ACT, SO LONG AS THEY SEEK TO MITIGATE THE RIGOUR OF A PARTICULAR SECTION FOR THE BENEF IT OF THE ASSESSEE. THEREFORE, WE CANNOT BE TAKING EXCEPTION TO THE REASONING AND CONCLUSION REACHED BY THE AUTHORITIES UNDER THE ACT. HOWEVER, THE TRIBUNAL AND THE HIGH COURT, HAVE GRANTED INTEREST ON THE AMOUNT OF TAX DEPOSITED BY TATA MOTORS LIMITED 7 THE RESIDENT/DEDUCTOR F ROM THE DATE OF PAYMENT ON THE GROUND, FIRSTLY, THE REFUND OF TAX IS DIRECTED BY THE FIRST APPELLATE AUTHORITY IN THE APPEAL FILED BY THE DEDUCTOR/ RESIDENT UNDER SECTION 240 OF THE ACT AND SECONDLY, THE REVENUE FOR HAVING RETAINED THE SUM BY WAY OF TAX HA S TO COMPENSATE THE PERSON WHO HAD DEPOSITED THE TAX. 36. SECTION 240 OF THE ACT PROVIDES FOR REFUND OF ANY AMOUNT THAT BECOMES DUE TO AN ASSESSEE AS A RESULT OF AN ORDER IN APPEAL OR ANY OTHER PROCEEDINGS UNDER THE ACT. THE PHRASE OTHER PROCEEDINGS UNDE R THE ACT IS OF WIDE AMPLITUDE. THIS COURT HAS OBSERVED, THAT, THE OTHER PROCEEDINGS UNDER THE ACT WOULD INCLUDE ORDERS PASSED UNDER SECTION 154 (RECTIFICATION PROCEEDINGS), ORDERS PASSED BY THE HIGH COURT OR SUPREME COURT UNDER SECTION 260 (IN REFERENCE) , OR ORDER PASSED BY THE COMMISSIONER IN REVISION APPLICATIONS UNDER SECTION 263 OR IN AN APPLICATION UNDER SECTION 273A. 37. A TAX REFUND IS A REFUND OF TAXES WHEN THE TAX LIABILITY IS LESS THAN THE TAX PAID. AS PER THE OLD SECTION AN ASSESSEE WAS ENTI TLED FOR PAYMENT OF INTEREST ON THE AMOUNT OF TAXES REFUNDED PURSUANT TO AN ORDER PASSED UNDER THE ACT, INCLUDING THE ORDER PASSED IN AN APPEAL. IN THE PRESENT FACT SCENARIO, THE DEDUCTOR/ASSESSEE HAD PAID TAXES PURSUANT TO A SPECIAL ORDER PASSED BY THE AS SESSING OFFICER/INCOME TAX OFFICER. IN THE APPEAL FILED AGAINST THE SAID ORDER THE ASSESSEE HAS SUCCEEDED AND A DIRECTION IS ISSUED BY THE APPELLATE AUTHORITY TO REFUND THE TAX PAID. THE AMOUNT PAID BY THE RESIDENT/ DEDUCTOR WAS RETAINED BY THE GOVERNMENT TILL A DIRECTION WAS ISSUED BY THE APPELLATE AUTHORITY TO REFUND THE SAME. WHEN THE SAID AMOUNT IS REFUNDED IT SHOULD CARRY INTEREST IN THE MATTER OF COURSE. AS HELD BY THE COURTS WHILE AWARDING INTEREST, IT IS A KIND OF COMPENSATION OF USE AND RETENTION OF THE MONEY COLLECTED UNAUTHORIZEDLY BY THE DEPARTMENT. WHEN THE COLLECTION IS ILLEGAL, THERE IS CORRESPONDING OBLIGATION ON THE REVENUE TO REFUND SUCH AMOUNT WITH INTEREST IN AS MUCH AS THEY HAVE RETAINED AND ENJOYED THE MONEY DEPOSITED. EVEN THE DEPARTM ENT HAS UNDERSTOOD THE OBJECT BEHIND INSERTION OF SECTION 244A, AS THAT, AN ASSESSEE IS ENTITLED TO PAYMENT OF INTEREST FOR MONEY REMAINING WITH THE GOVERNMENT WHICH WOULD BE REFUNDED. THERE IS NO REASON TO RESTRICT THE SAME TO AN ASSESSEE ONLY WITHOUT EXT ENDING THE SIMILAR BENEFIT TO A RESIDENT/ DEDUCTOR WHO HAS DEDUCTED TAX AT SOURCE AND DEPOSITED THE SAME BEFORE REMITTING THE AMOUNT PAYABLE TO A NON - RESIDENT/FOREIGN COMPANY. 38. PROVIDING FOR PAYMENT OF INTEREST IN CASE OF REFUND OF AMOUNTS PAID AS TAX OR DEEMED TAX OR ADVANCE TAX IS A METHOD TATA MOTORS LIMITED 8 NOW STATUTORILY ADOPTED BY FISCAL LEGISLATION TO ENSURE THAT THE AFORESAID AMOUNT OF TAX WHICH HAS BEEN DULY PAID IN PRESCRIBED TIME AND PROVISIONS IN THAT BEHALF FORM PART OF THE RECOVERY MACHINERY PROVIDED IN A TA XING STATUTE. REFUND DUE AND PAYABLE TO THE ASSESSEE IS DEBT - OWED AND PAYABLE BY THE REVENUE. THE GOVERNMENT, THERE BEING NO EXPRESS STATUTORY PROVISION FOR PAYMENT OF INTEREST ON THE REFUND OF EXCESS AMOUNT/TAX COLLECTED BY THE REVENUE, CANNOT SHRUG OFF I TS APPARENT OBLIGATION TO REIMBURSE THE DEDUCTORS LAWFUL MONIES WITH THE ACCRUED INTEREST FOR THE PERIOD OF UNDUE RETENTION OF SUCH MONIES. THE STATE HAVING RECEIVED THE MONEY WITHOUT RIGHT, AND HAVING RETAINED AND USED IT, IS BOUND TO MAKE THE PARTY GOOD, JUST AS AN INDIVIDUAL WOULD BE UNDER LIKE CIRCUMSTANCES. THE OBLIGATION TO REFUND MONEY RECEIVED AND RETAINED WITHOUT RIGHT IMPLIES AND CARRIES WITH IT THE RIGHT TO INTEREST. WHENEVER MONEY HAS BEEN RECEIVED BY A PARTY WHICH EX AE QUO ET BONO OUGHT TO BE REFUNDED, THE RIGHT TO INTEREST FOLLOWS, AS A MATTER OF COURSE. 39. IN THE PRESENT CASE, IT IS NOT IN DOUBT THAT THE PAYMENT OF TAX MADE BY RESIDENT/DEPOSITOR IS IN EXCESS AND THE DEPARTMENT CHOOSES TO REFUND THE EXCESS PAYMENT OF TAX TO THE DEPOSITOR. W E HAVE HELD THE INTEREST REQUIRES TO BE PAID ON SUCH REFUNDS. THE CATECHIZE IS FROM WHAT DATE INTEREST IS PAYABLE, SINCE THE PRESENT CASE DOES NOT FALL EITHER UNDER CLAUSE (A) OR (B) OF SECTION 244A OF THE ACT. IN THE ABSENCE OF AN EXPRESS PROVISION AS CON TAINED IN CLAUSE (A), IT CANNOT BE SAID THAT THE INTEREST IS PAYABLE FROM THE 1ST OF APRIL OF THE ASSESSMENT YEAR. SIMULTANEOUSLY, SINCE THE SAID PAYMENT IS NOT MADE PURSUANT TO A NOTICE ISSUED UNDER SECTION 156 OF THE ACT, EXPLANATION TO CLAUSE (B) HAS NO APPLICATION. IN SUCH CASES, AS THE OPENING WORDS OF CLAUSE (B) SPECIFICALLY REFERRED TO AS IN ANY OTHER CASE, THE INTEREST IS PAYABLE FROM THE DATE OF PAYMENT OF TAX. THE SEQUEL OF OUR DISCUSSION IS THE RESIDENT/DEDUCTOR IS ENTITLED NOT ONLY THE REFUND OF TAX DEPOSITED UNDER SECTION 195(2) OF THE ACT, BUT HAS TO BE REFUNDED WITH INTEREST FROM THE DATE OF PAYMENT OF SUCH TAX. 9 . THUS, THE AFORESAID DECISION AND THE RATIO OF THE HON'BLE SUPREME COURT ARE CLEARLY APPLICABLE NOT ONLY ON THE FACT S OF THE CASE BUT ALSO ON THE PRINCIPLE S OF LAW APPLICABLE IN SUCH CASES. H ENCE, RESPECTFULLY FOLLOWING THE DECISION OF HON'BLE SUPREME COURT , WE HOLD THAT THE ASSESSEE IS ELIGIBLE FOR INTEREST UNDER SECTION 244A ON THE AMOUNT OF REFUND DUE TO THE ASSESSEE WORKED OUT ON TDS DEDUCTED BY IT . CONSEQUENTLY, WE SET ASIDE THE IMPUGNED ORDER PASSED BY THE LEARNED TATA MOTORS LIMITED 9 COMMISSIONER (APPEALS) AND DIRECT THE ASSESSING OFFICER TO GRANT INTEREST UNDER SECTION 244A. THUS, THE GROUND RAISED BY THE ASSESSEE IS ALLOWED. 10 . 10 . IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. 28 TH MARCH 2014 ORDER PRONOUNCED IN THE OPEN COURT O N 28 TH MARCH 2014 SD/ - SANJAY ARORA ACCOUNTANT MEMBER SD/ - AMIT SHUKLA JUDICIAL MEMBER MUMBAI, DATED : 28 TH MARCH 2014 / COPY OF THE ORDER FORWARDED TO : ( 1 ) / THE ASSESSEE ; ( 2 ) / THE REVENUE; ( 3 ) ( ) / THE CIT(A ) ; ( 4 ) / THE CIT, MUMBAI CITY CONCERNED ; ( 5 ) , , / THE DR, ITAT, MUMBAI ; ( 6 ) / GUARD FILE . / TRUE COPY / BY ORDER . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI