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2014 (12) TMI 1193 - AT - Income TaxNon granting of interest u/s 244A on the self assessment tax paid - maintainability of proceedings u/s 154 - Held that - The issue of interest on self assessment cannot be raised in proceedings u/s 154, cannot be accepted, because it was only after giving effect to the Ld.CIT(A) order and while granting refund, the AO has not granted the interest on self assessment tax. The only course left before the assessee was to file a petition u/s 154. Thus the claim of interest of self assessment tax is maintainable in the proceedings u/s 154. So far as the issue, whether interest should be granted on the amount of self assessment tax paid is now covered by the decision of the Hon ble Bombay High Court in the case of Stock Holdings Corporation of India (2014 (11) TMI 899 - BOMBAY HIGH COURT ), wherein held that tax paid on self assessment would fall within the ambit of section 244A(i)(b). Accordingly the AO is directed to grant interest u/s 244A on the self assessment tax. - Decided in favour of assessee Working of interest u/s 244A while granting refund to the assessee - Held that - The assessing officer should examine the working of refund and interest afresh, keeping in view the ratio laid down by the Hon ble Delhi High Court in the case of India Trade Promotion Organization Vs. CIT (2013 (9) TMI 451 - DELHI HIGH COURT). The assessee can submit its own working, which can be examined by the AO in light of the decision of the Hon ble Delhi High Court as their Lordships after examining the relevant provision of section 244A and effect of the decision of Hon ble Supreme Court in the case of CIT Vs. HEG 2009 (12) TMI 35 - SUPREME COURT have laid down the principle as to how the part payment of refund and the interest on the balance amount is to be calculated - Decided in favour of assessee partly for statistical purpose.
Issues:
Non-granting of interest u/s 244A on self-assessment tax and incorrect working of interest and refund adjustments. Analysis: The appeals were filed by the assessee and the Revenue against separate orders related to proceedings u/s 154. The main issue in all appeals was the non-granting of interest u/s 244A on self-assessment tax and the incorrect working of interest while granting refunds. The first issue was regarding the non-granting of interest on self-assessment tax by the assessing officer after the completion of assessment. The assessee contended that interest on self-assessment tax should be granted, citing a decision of the Bombay High Court. The assessing officer argued that the issue was beyond the scope of section 154. The Tribunal held that the claim for interest on self-assessment tax was maintainable under section 154, and directed the AO to grant interest u/s 244A on the self-assessment tax. In the second issue, the assessee challenged the incorrect working of interest and refund adjustments by the assessing officer. The assessee argued that the AO had made adjustments only on account of interest and not against the tax amount, which was incorrect. The Tribunal agreed with the assessee and directed the AO to re-examine the working of the refund and interest, considering the decision of the Delhi High Court. The AO was instructed to calculate interest on the outstanding demand correctly, in line with legal principles. The ground raised by the assessee was partly allowed for statistical purposes. Regarding the Revenue's appeal, which raised a similar issue to the assessee's first ground, the Tribunal dismissed the department's ground based on the findings in the assessee's appeal. In the appeals for other assessment years, similar issues were raised, and the Tribunal set aside those issues for the AO to re-examine the working of interest and refunds in line with the decision of the Delhi High Court. The grounds raised by the assessee in those years were partly allowed for statistical purposes. In conclusion, the appeal filed by the assessee was partly allowed for statistical purposes, while the Revenue's appeal was dismissed. The Tribunal directed the AO to re-examine the working of interest and refunds in all relevant cases based on legal principles established by the High Courts.
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