2010 (2) TMI 752 - AT - Income Tax

Interest on refund - assessee had paid advance tax, self assessment tax and tax on regular assessment - Assessing Officer has not assigned any reasons for not granting interest on self assessment tax paid by the assessee on 13th February, 2006 - Held that Since the learned CIT(A) has allowed the claim of the assessee by following the decision of the co-ordinate Bench of the Tribunal, therefore, in absence of any contrary material brought to our notice by the learned DR, we do not find any infirmity in the order of the CIT(A). Accordingly, the same is upheld.

Summary

Issues:
- Entitlement to interest under section 244A on self-assessment tax paid
- Granting of interest on self-assessment tax from the date of payment

Analysis:
1. Issue of Entitlement to Interest under Section 244A on Self-Assessment Tax Paid:
- The appeals by the Revenue were against separate orders relating to assessment years 1999-2000 and 2003-04. The Revenue contended that the Ld. CIT(A) erred in holding that the assessee is entitled to interest under section 244A on the amount of self-assessment tax paid. The Assessing Officer determined the tax liability, but interest u/s. 244A was granted only on the tax paid on regular assessment, not on the self-assessment tax amount.
- The CIT(A) considered various arguments and relied on legal precedents like decisions of the Hon'ble Madras High Court, Hon'ble Supreme Court, and the Kolkata Bench of the Tribunal. The CIT(A) held that interest u/s. 244A should be granted on the self-assessment tax amount paid by the assessee. The decision was supported by legal interpretations and previous judgments.
- The Tribunal upheld the CIT(A)'s decision, noting that the Assessing Officer did not provide reasons for not granting interest on the self-assessment tax amount. The Tribunal referred to a co-ordinate Bench decision supporting the assessee's claim for interest on self-assessment tax paid. The Tribunal emphasized equitable treatment and the need to provide interest from the date of payment till the refund date.

2. Issue of Granting of Interest on Self-Assessment Tax from the Date of Payment:
- The Revenue raised concerns about granting interest on self-assessment tax from the date of payment. However, the CIT(A) and the Tribunal, following legal interpretations and precedents, held that interest under section 244A should indeed be provided on the self-assessment tax amount from the date of payment until the refund date. The Tribunal dismissed the Revenue's grounds, maintaining that the CIT(A) decision was in line with established legal principles and previous judgments.

In conclusion, the Tribunal dismissed the Revenue's appeals, upholding the CIT(A)'s decision to grant interest under section 244A on the self-assessment tax amount paid by the assessee and to provide interest from the date of payment till the refund date. The judgments were based on legal interpretations, precedents, and the principles of equity in tax matters.