2018 (6) TMI 1748 - HC - Income Tax

Interest payable u/s 244A(1)(b) on refund of excess amount - Entitlement to interest on the payment of tax from the date of its payment till the date of issue of intimation under section 143(1)(a) - HELD THAT - As agreed position between the parties that the issue arising herein stands concluded against the Revenue and in favour of the appellant assessee by the decision of this Court in Stock Holding Corporation of India Ltd. Vs. N.C.Tiwari, Commissioner of Income Tax and Ors. 2014 (11) TMI 899 - BOMBAY HIGH COURT The substantial question of law is answered in the negative i.e. in favour of the appellant assessee and against the respondent revenue.

Summary

Issues: Interpretation of the entitlement to interest on tax payment under the Income Tax Act, 1961.

Analysis:
- The appeal under section 260 A of the Income Tax Act, 1961 was admitted on 14th December 2004, questioning the entitlement to interest on a tax payment of ?3.5 crores made on 31st May 1989 until the date of intimation under section 143(1)(a) of the Act on 29th March 1990.
- The central question was whether the Income Tax Appellate Tribunal was correct in denying the appellant's entitlement to interest on the tax payment within the specified period.
- The court noted that the issue in question had already been settled in favor of the appellant-assessee in a previous case, Stock Holding Corporation of India Ltd. Vs. N.C.Tiwari, Commissioner of Income Tax and Ors., reported in (2015) 373 ITR 282 (Bom).
- Based on the precedent and the agreement between the parties, the court concluded that the substantial question of law should be answered in the negative, thereby ruling in favor of the appellant-assessee and against the respondent-revenue.
- Consequently, the appeal was allowed, and no specific order was issued regarding costs, indicating a clear judgment in favor of the appellant-assessee on the issue of interest entitlement on the tax payment under the Income Tax Act, 1961.