Sec. 132 & 244A of Income Tax Act, 1961— Refund - Interest - Sections 132B and 244A are independent provisions and are not over-lapping.

Facts: The writ petition has been filed seeking quashing of order whereby interest on the seized amount has been restricted till the date of assessment. Further prayer is for direction to the respondents to pay interest on the seized amount for the period from 21.1.2014 to 4.7.2017.

Held, that the area of operation of Section 132B(4) ends with the completion of assessment. If there is delay thereafter in refunding the amount, Section 244A takes such a case within its ambit, it deals with payment of simple interest where refund becomes due to the assessee under the Act. Clause (b) of Section 244A talks of all other cases than mentioned in clause (a) and (aa) for giving interest from the date of payment to the date on which the refund is granted. The refund of amount became due to the petitioner under the Act after finalisation of the assessment i.e. 21.1.2014 and the same was refunded on 4.7.2017, in such circumstances, the case is covered under clause (b) of Section 244A. Sections 132B and 244A are independent provisions and are not over-lapping. Rather, Section 132B(4) of the Act deals with interest for the period from seizing of the amount till finalisation of the assessment and Section 244A operates for the period after the refund has become due under the Act. The writ petition is allowed. The petitioner shall be entitled to interest under Section 244A for the period from 22.1.2014 till the date of payment. - JIWAN KUMAR V/s PR. CIT - [2020] 424 ITR 296 (P&H)