2011 (6) TMI 874 - AT - Income Tax

Summary

Issues involved: Interpretation of section 244A of the Income Tax Act regarding interest on self assessment tax refund.

Summary:
The appeal was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-10, Mumbai for the assessment year 2001-02. An adjournment application was moved on behalf of the assessee, but the Tribunal proceeded to hear the appeal on an ex parte basis as the issue raised by the Revenue was covered in favor of the assessee.

The Revenue raised grounds related to the allowance of interest u/s. 244A of the Act on self assessment tax refund. The Ld. CIT(A) had decided the issue in favor of the assessee based on the interpretation of section 244A(1). The Ld. CIT(A) referred to various decisions, including the case of ACIT vs. Novartis India Ltd., to support the assessee's entitlement to interest on refund arising from excess payment of self assessment tax.

The Tribunal, after considering the submissions and relevant material, upheld the decision of the Ld. CIT(A) based on the precedents cited and declined to interfere in the order. Consequently, the Revenue's appeal was dismissed, and the order was pronounced on June 15, 2011.