The meaning of any amount becomes due to assessee under section 237 to 245 of the Income Tax Act is not defined in the act itself. But we can take guidance from decisions by various high courts. Here are excerpts of courts orders in which the Hon’ble High Court tried to explain the meaning of any amount becomes due to assessee.
Meaning of any amount becomes due to assessee defined by court
The phrase ‘any amount becomes due to assessee‘ used in section 237 to 245 of the Income Tax Act came up before various high courts as detailed under :
1. Hon’ble Kerala High Court explained the meaning of ‘any amount becomes due to assessee’ while delivering judgment in Asstt. CIT vs. Kerala Transport co.  42 Taxmann.Com 83/222 taxman 149/270 CTR 214 (Ker.) as under :
Meaning : Any amount becomes due to the assessee’ as mentioned in section 244a(1) clearly takes in all forms of refunds, either self assessed tax or tax paid as per notice under section 156; it cannot be argued that liability to pay interest is only in respect of tax paid after a demand is made under section 156.
2. Hon’ble Delhi High Court explained the meaning of ‘any amount becomes due to assessee’ while delivering judgment in India Trade Promotion Organisation vs. CIT  38 taxmann.Com 233/263 CTR 18 (Delhi) as under :
Meaning : The words used in section 244A states that ‘where refund of any amount becomes due and payable to the assessee under the act, the assessee shall be entitled to receive, in addition to the said amount, simple interest calculated in the manner stipulated’. The legislature has not used the words ‘tax paid’ or ‘the principal amount of tax paid’.
The words used by the legislature are ‘any amount’ and ‘said amount’. The words are, therefore, much wider and broader than the tax amount, which is to be refunded. The words ‘any amount’ would include within its scope and ambit the interest element, which has accrued and is payable on the date of the refund. Thus when the revenue does not pay full amount of refund but part amount is paid, it will be liable to pay interest on the balance outstanding amount.
The balance outstanding amount may consist of the tax paid or the interest, which is payable till the payment of the part amount and interest payable on the principal amount, which remained outstanding thereafter.
Section 237 to 245 of Income Tax Act
237. If any person satisfies the Assessing Officer that the amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a refund of the excess.
In this article, you can get guidance from high courts on the meaning of any amount becomes due to assessee under section 237 to 245 of the Income Tax Act.
Updated up to Finance Act 2021