JUDGMENT judgment of court was delivered by Ajay Kumar Mittal J.-This appeal has been preferred by Revenue under section 260A of Income-tax Act, 1961 (in short, "the Act"), against order dated August 31, 2006, annexure 3 passed by Income-tax Appellate Tribunal, Chandigarh Bench "A" (in short, "the Tribunal") in I. T. A. No. 236/Chandi/2005 for assessment year 1989-90, claiming following substantial questions of law: "(1) Whether hon'ble Income-tax Appellate Tribunal was right in directing to allow interest under section 244A(1)(b) by treating tax paid on self-assessment as pre paid tax for purpose? (2) Whether, on facts and in circumstances of case, hon'ble Income-tax Appellate Tribunal is correct in law in holding that Explanation below clause (b) of sub-section (1) of section 244A is merely to stipulate period for which interest is to be granted? (3) Whether, on facts and in circumstances of case, for purpose of Explanation below clause (b) of sub-section (1) of section 244A, date of payment of tax can be understood to mean date of payment of self- assessment tax? (4) Whether, on facts and in circumstances of case, inference drawn by hon'ble Income-tax Appellate Tribunal from Explanation below clause (b) of sub-section (1) of section 244A is correct?" few facts relevant for decision of controversy involved as narrated in appeal may be noticed. assessee-company was allowed interest under section 244A of Act at Rs. 7,02,044 while giving effect to order of Tribunal. interest was allowed on refund due for period from April 1, 1989, to date of issue of refund. However, later on interest allowed under section 244A of Act was withdrawn, vide order dated July 11, 2003, under section 154 of Act. Aggrieved by order, assessee filed appeal before Commissioner of Income-tax (Appeals) ("the CIT(A)"). Commissioner of Income-tax (Appeals) dismissed appeal, vide order dated December 30, 2004, annexure 2 and sustained order of Assessing Officer withdrawing interest under section 244A of Act. Still not satisfied, assessee filed appeal before Tribunal. Vide order dated August 31, 2006, annexure 3, Tribunal partly allowed appeal. It was held that in terms of clause (b) of section 244A(1) read with Explanation thereof, period for which interest can be granted is from date on which self-assessment tax was adjusted against assessed income-tax and up to date of actual grant of refund. Hence, instant appeal by Revenue. We have heard learned counsel for parties and perused record. Learned counsel for Revenue submitted that Revenue was not liable to pay interest on self-assessment tax which was deposited by assessee under section 140A of Act. Reference was made to judgments reported in Saurashtra Cement and Chemical Industries Ltd. v. ITO [1992] 194 ITR 659 (Guj) [FB], CIT v. J. Pitambardas and Co. [1995] 216 ITR 172 (Bom), Saraya Sugar Mills Ltd. v. ITO [1997] 226 ITR 475 (All), E. Philip Joseph v. ITO [1998] 234 ITR 846 (Ker), National Horticulture Board v. Union of India [2002] 253 ITR 12 (P&H), CIT v. Ashok Leyland Ltd. [2002] 254 ITR 641 (Mad), CIT v. Shelly Products [2003] 261 ITR 367 (SC), Kerala State Civil Supplies Corporation Ltd. v. Joint CIT (Assessment) [2006] 282 ITR 647 (Ker) and CIT v. Cholamandalam Investment and Finance Co. Ltd. [2007] 294 ITR 438 (Mad). On other hand, learned counsel for assessee on strength of judgments in National Horticulture Board's case (supra), CIT v. Sutlej Industries Ltd. (I. T. A. No. 1204 of 2005, decided on March 15, 2010 (Delhi)) reported in [2010] 325 ITR 331 (Delhi), CIT v. M. M. T. C. Ltd. [2000] 246 ITR 725 (Delhi) and Cholamandalam Investment and Finance Co. Ltd.'s case (supra), contended that assessee was entitled for interest under section 244A(1)(b) of Act on tax deducted at source, advance tax as well as self-assessment tax. Tribunal had rightly held that assessee was eligible for interest under section 244A(1)(b) of Act on refund. primary question that arises for adjudication in present appeal is whether assessee is entitled to interest under section 244A(1)(b) of Act on amount of refund which was deposited by it by way of selfassessment tax under section 140A of Act. Chapter XIX of Act deals with "refunds' and contains various provisions relating to refund of amount paid by assessee and payment of interest thereon. Section 244A(1) and (2), which finds place in this Chapter and which governs award of interest on refund, at relevant time, reads as under: "244A. Interest on refunds.-(1) Where refund of any amount becomes due to assessee under this Act, he shall, subject to provisions of this section, be entitled to receive, in addition to said amount, simple interest thereon calculated in following manner, namely:- (a) where refund is out of any tax collected at source under section 206C or paid by way of advance tax or treated as paid under section 199, during financial year immediately preceding assessment year, such interest shall be calculated at rate of one per cent. for every month or part of month comprised in period from 1st day of April of assessment year to date on which refund is granted: Provided that no interest shall be payable if amount of refund is less than ten per cent. of tax as determined under sub-section (1) of section 143 or on regular assessment; (b) in any other case, such interest shall be calculated at rate of one per cent. for every month or part of month comprised in period or periods from date or, as case may be, dates of payment of tax or penalty to date on which refund is granted. Explanation.-For purposes of this clause,'date of payment of tax or penalty' means date on and from which amount of tax or penalty specified in notice of demand issued under section 156 is paid in excess of such demand. (2) If proceedings resulting in refund are delayed for reasons attributable to assessee, whether wholly or in part, period of delay so attributable to him shall be excluded from period for which interest is payable, and where any question arises as to period to be excluded, it shall be decided by Chief Commissioner or Commissioner whose decision thereon shall be final." aforesaid provision came up for interpretation and consideration in National Horticulture Board's case (supra) wherein it was held as under (page 16 of 253 ITR): "A conjoint reading of provisions quoted above shows that assessee is entitled to receive interest on amount of refund at rates prescribed in clauses (a) and (b) of sub-section (1) of section 244A. rationale underlying this provision is to compensate assessee in lieu of deprivation of his property right by virtue of unlawful collection of tax. If proceedings resulting in refund are delayed due to reasons attributable to assessee, then period of delay has to be excluded from period for which interest is payable. In other words, if assessee is responsible for delay in finalisation of proceedings on basis of which he becomes entitled to refund, then period of delay is to be excluded from total period for which interest becomes payable. However, there is nothing in plain language of sub-section (1) and (2) of section 244A from which it can be inferred that assessee can be deprived of interest in respect of period during which his application for refund remains pending before competent authority." issue whether refund of self-assessment tax on account of excess amount of tax paid by assessee would entitle assessee to claim interest thereon at time of refund was considered by Delhi High Court in Sutlej Industries Ltd.'s case (supra). Following judgment of Madras High Court in Cholamandalam Investment and Finance Co. Ltd.'s case (supra), it was observed as under (page 337 of 325 ITR): "In case of CIT v. Cholamandalam Investment and Finance Co. Ltd. [2007] 294 ITR 438 (Mad), Madras High Court dealt with question of whether assessee is entitled to interest under section 244A as per clause (1)(b) of that section, when refund arises on account of payment of self- assessment tax. Madras High Court observed as under (page 442 of 294 ITR): 'Even though short title to section 140A reads as self-assessment, charging phrase employed in section 140A namely "Where any tax is payable on basis of any return required to be furnished under section 115WD or section 115WH or section 139 or section 142 or section 148 or section 153A, as case may be; assessee shall be liable to pay such tax together with interest payable under any provision of this Act for any delay in furnishing return", makes it clear that there is no difference between: (i) tax paid under section 115WJ, which deals with advance tax in respect of fringe benefits; or (ii) tax collected at source under section 206C; or (iii) any tax paid by way of advance tax or any tax treated as paid under section 199, which deals with credit for tax deducted, which are provided under section 244A(1)(a). proviso to section 244A(1)(a) makes it clear that no interest shall be payable if amount of refund is less than 10 per cent. on regular assessment with regard to refund of advance tax paid under section 115WJ in respect of fringe benefits; (ii) tax collected at source under section 206C; and (iii) advance tax or any tax treated as paid under section 199. But, with respect to other tax as per section 244A(1)(b), interest shall be payable even if amount is less than 10 per cent. of tax as determined under section 143(1) or on regular assessment, because there is no proviso to section 244A(1)(b) as provided under section 244A(1)(a).' Madras High Court further observed (page 443 of 294 ITR): 'It is also trite law that wherever assessee is entitled to refund, there is statutory liability on Revenue to pay interest on such refund on general principles to pay interest on sums wrongfully retained (reference Sandvik Asia Ltd).' Supreme Court dismissed Special Leave Petition (SLP) No. 16877 of 2008 filed by Revenue against decision in Cholamandalam Investment and Finance Co. Ltd. [2007] 294 ITR 438 (Mad), vide order dated December 3, and Finance Co. Ltd. [2007] 294 ITR 438 (Mad), vide order dated December 3, 2009. Supreme Court has also, recently, in case of CIT v. H.E.G. Ltd. reported in [2010] 324 ITR 331 (SC), vide its order dated December 3, 2009, held that expression'refund of any amount' would include interest under section 244A (on refund of tax deducted at source) to which assessee was lawfully entitled but had been wrongly withheld by Department." It was further held that amount of tax due on returned income is to be paid by way of tax deducted at source (section 199), advance tax (section 209) or by way of self-assessment tax (section 140A). In event of refund, assessee is entitled to payment of interest on excess amount of tax paid. It was noticed as under (page 338 of 325 ITR): "The tax due on returned income has to be paid by way of tax deducted at source (section 199), advance tax (section 209) or by way of self-assessment tax (section 140A). In addition, where assessment is completed at income higher than returned income, tax payable by assessee is specified in notice of demand issued under section 156 of Act. Where there is shortfall in payment on tax vis-a-vis tax finally due on assessed income, assessee is liable to pay interest under section 234B of Act. Conversely, where Revenue makes highpitched assessment which is subsequently reduced/modified in appeal, any payment of taxes made, which are subsequently refunded as consequence of relief obtained in appeals, etc., are monies legitimately belonging to taxpayers and wrongly withheld by Government. This is based on principle that if Revenue had, in first instance, made correct assessment of tax liability of assessee, assessee would not have been deprived by use of money. In such situation, where pre-paid taxes are in excess of assessed tax, assessee is entitled to refund of such tax along with interest thereon. Where assessee out of abundant caution pays self-assessment whilst staking claim in return, which claim is accepted, resulting in refund of self- assessment tax, assessee should be equally entitled to interest thereon. Section 244A was inserted in statute as measure of rationalization to ensure that assessee is duly compensated by Government, by way of payment of interest for monies legitimately belonging to assessee and wrongfully retained by Government, without any gaps. Therefore, in our view where self-assessment tax paid by assessee under section 140A is refunded, assessee should be, on principle entitled to interest thereon since self-assessment tax falls within expression'refund of any amount'." Similar view was expressed by Delhi High Court in M.M.T.C. Ltd.'s case (supra). It may be observed that in so far as nature of payment of tax is concerned, tax deducted at source, advance tax and also tax paid by way of self-assessment, after its adjustment in tax liability of assessee on regular assessment loses its original character and becomes tax paid in pursuance of liability. Once that is so, it cannot be held that assessee is only entitled to interest under section 244A(1)(b) on tax deducted at source or advance tax and not on self-assessment tax paid under section 140A of Act which was found to be paid in excess. assessee shall be entitled to interest under section 244A(1)(b) of Act on refund of self-assessment tax as well. Tribunal, while adjudicating issue, had noticed as under: "6. We have considered rival submissions carefully on this issue. Section 244A deals with grant of interest on refund of any amount of tax which becomes due to assessee in terms of provisions of Act. Clauses (a) and (b) of sub- section (1) of section 244A deal with two different situations. Clause (a) deals with refund of taxes which have been paid under section 115WJ or collected at source under section 206C or paid by way of advance tax or treated as paid under section 199 of Act. Clause (b) deals with refund of taxes in any other case. Clearly, in so far as present case is concerned, provisions of clause (a) are not attracted inasmuch as it is undisputed that refund accruing to assessee by order of Assessing Officer dated December 12, 2001, was not of taxes, which have been paid in manner stated in clause (a). tax refunded in instant case has been paid as self-assessment tax under section 140A of Act and, thus, as per assessee, clause (b) governs field. Revenue contends that clause (b) is confined to situations where tax refunded has been paid in terms of notice of demand issued by Assessing Officer under section 156. In our view, implication of clause (b) as is understood by Department, is not borne out of language of statute. No doubt, self-assessment tax is paid by assessee on basis of income declared in return. Once tax so paid gets adjusted against tax determined by Assessing Officer upon assessment, such self-assessment tax takes imprint of tax paid in pursuance to assessment. In fact similar issue was considered by Ahmedabad Bench of Tribunal in case of Dhanvi Trading and Investment (P.) Ltd. (supra) relevant portion of which we reproduce herein: 'So long as self-assessment tax possesses and retains character of self-assessment, there is no question of reckoning same for purposes of treating it as excess payment and allowing interest as envisaged under section 244A till regular assessment is made under section 143 or section 144, it is only on date assessment is made that deeming fiction contained under section 244A(2) comes into play and self-assessment tax is deemed to have been paid towards regular assessment. It is, therefore, on date of regular assessment that self-assessment tax loses its identity and assumes character of tax paid for purpose of quantification of any excess of tax payment in response to notice of demand issued under section 156. explanation appended to section 244A(1) amply clarifies position as explained above.' From above, it, therefore, follows that tax paid under section 140A is also taken as paid in pursuance of assessment after completion of assessment. 7. Moreover, rationale of provisions of section 244A has been subject matter of review by hon'ble jurisdictional High Court of Punjab and Haryana in case of National Horticulture Board (supra). It has been opined that rationale underlying provision was to compensate assessee for deprivation of his property right which was by virtue of unlawful collection of tax. In fact, tested on such anvil, interest under section 244A on refund of tax paid as self-assessment tax cannot be considered as outside purview of section 244A of Act. significance of Explanation below clause (b) is merely to stipulate period for which interest has to be granted. For purpose of clause (b), interest is payable for period starting from date of payment of tax ending up to date on which such refund is granted. Therefore, in principle, we uphold stand of assessee that it was eligible for interest under section 244A(1)(b) on refund accruing to it as result of order of giving appeal effect on December 12, 2001. However, while computing eligible interest, it appears that period was considered from 1st day of April 1989 up to date of refund. Whereas in terms of clause (b) of section 244A(1)(b) read with Explanation thereof period for which interest can be granted is date on which self-assessment tax was adjusted against assessed income and up to date of actual grant of refund. Therefore, to this extent, we find that there was mistake apparent in order of Assessing Officer dated December 12, 2001, by way of which interest under section 244A amounting to Rs. 7,02,044 was allowed to assessee. We, therefore, set aside order of lower authorities and direct Assessing Officer to recompute interest eligible to assessee in manner indicated above." Learned counsel for assessee had made reference to plethora of judgments noticed in paragraph 4 hereinbefore. careful perusal of said judgments clearly spells out that issue in these judgments was different in light of factual matrix involved therein and in none of cases, issue whether assessee was entitled to interest on refund of self-assessment tax paid under section 140A of Act in terms of section 244A or not, was under consideration. Thus, no advantage can be derived by learned counsel for revenue from aforesaid pronouncements. In view of above, substantial questions of law are answered accordingly and finding no merit in appeal, same stands dismissed. *** Commissioner of Income-tax v. Punjab Chemical and Crop Protection Limited