2011 (3) TMI 1685 - AT - Income Tax

Summary

Issues involved: Appeal against order of Commissioner of Income-tax(Appeals) granting interest u/s.244A on self-assessment tax refund for assessment year 1993-94.

Summary:

1. The Revenue appealed against the order of Commissioner of Income-tax(Appeals) granting interest u/s.244A on the self-assessment tax refund for the assessment year 1993-94.

2. The Revenue contended that the interest u/s.244A should not be granted as the refund did not arise due to payment of advance tax or taxes paid u/s.199 of the Act during the financial year immediately preceding the assessment year.

3. The assessee had requested the Assessing Officer to grant interest on self-assessment tax, which was initially rejected. However, the Ld. CIT(A) allowed the appeal of the assessee based on a judgment of the Madras High Court in the case of Cholamandalam Investment & Finance Co. Ltd. The Ld. CIT(A) held that the appellant is entitled to interest u/s.244A on self-assessment tax payments.

4. During the hearing, the Ld. DR relied on the Assessing Officer's order, while the Ld. Counsel for the assessee argued that the issue was covered by the decision of the Hon'ble jurisdictional High Court in the case of CIT v. Gujarat State Warehousing Corporation.

5. The Tribunal upheld the order of the Ld. CIT(A) stating that the assessee is entitled to interest u/s.244A on self-assessment tax payment based on the Madras High Court judgment and other decisions of the Tribunal. The Tribunal also noted that the issue was covered by the jurisdictional High Court's decision in the case of Gujarat State Warehousing Corporation.

6. Consequently, the Revenue's appeal was dismissed, and the order passed by the Ld. CIT(A) granting interest u/s.244A on self-assessment tax payments was upheld.

Order pronounced on 10th March, 2011.