K. Gnanaprakasam, J.:— At the instance of the Revenue, the following question has been referred to us, i.e,
“Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the assessee was entitled to interest under section 244(1A) of the Income-tax Act, 1961, on the refund due to excess payment of tax under section 140A(1) of the Act?”
2. A question similar to this came up for consideration before the apex court in the case of Modi Industries Ltd. v. CIT, [1995] 216 ITR 759, wherein it was held that (page 805):
“… if any refund was payable pursuant to the order of regular assessment, that had to be paid in accordance with the provisions of section 243 of Chapter XIX of the Act. If the payment was delayed beyond the period mentioned in section 243 of the Act, interest had to be paid from the date of expiry of the aforesaid period to the date of the refund order.”
3. As such, the assessee is entitled to interest and the question referred to us is answered in favour of the assessee and against the Revenue.