2010 (12) TMI 828 - AT - Income Tax

Interest on refund u/s 244A - Merely because the AO passed the order u/s 154 of the IT Act would not make it appeallable before the learned CIT(A) u/s 246A of the IT Act - The claim of interest simpliciter is not appeallable order before the learned CIT(A) as per section 246A of the IT Act - The crux of the matter shall have be seen in entirety and quoting wrong provisions of law would make it appeallable order before the learned CIT(A) - The provisions of section 244A (2) are specific and on such a matter on issue the point shall have to be decided by the CCIT or CIT whose decision thereof shall be final - Hence the appeal of the assessee is dismissed.

Summary

Issues:
Appeal against order of CIT(A) for granting interest u/s 244A of the IT Act.

Analysis:
The appeal was filed against the CIT(A)'s decision that the appeal of the assessee was not maintainable for granting interest u/s 244A of the IT Act for the assessment year 2001-02. The AO had noted that due to the misquoting of the Permanent Account Number on 16 challans, the credit was not given to the assessee, resulting in the credit going to another individual's ledger. A meeting was held to address this issue, where the assessee was directed to furnish an indemnity bond and the other individual was asked to file a disclaimer. Credit was eventually given for the challans, but due to the misquoting of the Permanent Account Number, no interest was allowable to the assessee as per section 244A(2) of the IT Act. The CIT(A) directed the AO to pay interest u/s 244A for one challan where the Permanent Account Number was correctly mentioned, but for disputed challans, it was held that the AO's decision was not appealable, and only the CCIT's decision would be final.

Upon considering the submissions, the Tribunal found that the matter was not fit for interference. The Tribunal noted that the appeal was not maintainable as the matter had to be decided by the CCIT or CIT concerned according to section 244A(2) of the Act. The Tribunal highlighted the provisions of section 244A, emphasizing that the claim of interest simpliciter was not appealable before the CIT(A) and that the decision on such matters had to be made by the CCIT or CIT, whose decision would be final. Therefore, the appeal of the assessee was dismissed, but the assessee was given the liberty to agitate the issue before the concerned CCIT/CIT in accordance with the law.

In conclusion, the Tribunal dismissed the appeal of the assessee, stating that the matter had to be decided by the CCIT or CIT concerned as per section 244A(2) of the IT Act. The Tribunal emphasized that quoting wrong provisions of law would not make the appeal before the CIT(A) maintainable, and only the CCIT or CIT could decide such issues. The assessee was granted the opportunity to pursue the matter with the CCIT/CIT in accordance with the law.