Full Judgment
1. By this application under Section 260A, learned counsel appearing for the asscssee submits that the following question, referred at page 4 of the memorandum of appeal is a substantial question of law, which requires interpretation :
'Whether, on the facts and in the circumstances of the case and on a judicious interpretation of Section 244(1A) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal was justified in law in holding that the appellant was not entitled to get 'interest on interest' on the sum paid in pursuance of the order of assessment for the assessment year 1988-89 ?'
2. Before the Commissioner of Income tax (Appeals), the assessee has raised an additional ground and claimed that the assessec is entitled to 'interest on interest' payable under Section 244(1A) of the Act. Before the Commissioner of Income-tax (Appeals), reliance was placed on the decision of the Gujarat High Court in D. ]. Works v. Deputy CIT : [1992]195ITR227(Guj) . Admittedly, that decision is on the interest payable under section214(1) of the Income lax Act, 1951. The interest payable under Section 214 and interest payable under Section 244(1A) arc on different footing's. The interest payable under Section 244(1A) is payable by the Revenue till the refund is made to the assessee. But in case of interest payable under Section 214 after the date of assessment, no interest for the period from the date of assessment order is payable under Section 214 to the date of payment of interest. In this view of the Act, we cannot put at par the interest payable under Section 244(1A) with the interest payable under Section 214 of the Act of 1961.
3. The plain language of Section 244(1A) requires the payment of simple interest at the rate of 15 per cent. per annum on the amount of refund due from the date immediately following the expiry of the period of three months to the date on which the refund is granted. In view of this plain language of the provisions of Section 244(1A), which requires that where the whole or any part of the refund referred to in Sub-section (1) is due to the assessee, as a result of any amount having been paid by him after March 31, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess and the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in Sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the date the refund is granted. In view of this plain language of the provisions of Sub-section (1A), no substantial question of law does arise for which the appeal is considered. The application for appeal is rejected.
4. All parties arc to act on a xeroxed signed copy of this dictated order on the usual undertaking.