2011 (8) TMI 1210 - AT - Income Tax

Summary

Issues involved: Appeal against orders dated 30.12.2009 by ld. CIT(A) for assessment years 1998-99 and 1999-2000. Common issues in both appeals.

ITA No. 4718/Mum/2010 (AY-1998-99):

The assessee company requested recalculation of interest u/s 244A of the Income Tax Act, 1961. AO rejected the request, citing no apparent mistake. CIT(A) directed AO to allow interest on refund amount after MAT credit. Revenue appealed, citing proviso to section 115JAA (2). Parties agreed issue covered by Supreme Court decision in CIT V/s Tulsyan NEC Ltd. Issue settled in favor of assessee based on recent court decisions. Tribunal upheld CIT(A) decision, allowing interest after MAT credit verification.

ITA No. 4719/Mum/2010 (AY-1999-2000):

Facts similar to AY-1998-99. Parties agreed to consider AY-1998-99 plea. Tribunal upheld CIT(A) decision to allow interest u/s 244A after MAT credit verification. Revenue's grounds rejected. Appeals dismissed.

Conclusion: Tribunal upheld CIT(A) decisions in both appeals, allowing interest under section 244A after MAT credit verification. Revenue's appeals dismissed.