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2018 (3) TMI 1023 - HC - Income TaxPayment of interest u/s 244A for the delay caused by the assessee for correcting the TDS certificates - review of judgment - Held that - Evaluating the scope of Section 244A (2), which clearly indicates that if the proceedings resulting in the refund of delay for the reasons attributable to the assessee, whether wholly or in part, the period of the delay so attributable shall be excluded from the period for which interest is payable. Statue also indicates that, if any question arises as to the period to be excluded, it has to be decided by the Principal Chief Commissioner or the Chief Commissioner. Under what all circumstances can such an eventuality arise is a matter to be considered by a competent authority. Once the competent authority had taken such a decision, this Court, in a petition under Article 226 of the Constitution of India will not go into the merits of the contention, unless the decision is illegal or perverse. Each case has to be decided on its own facts. In CIT, Thiruvananthapuram v State Bank of Travancore (2014 (1) TMI 25 - KERALA HIGH COURT), the Division Bench was considering a case in which interest was directed to be paid by the Commissioner of Income Tax, which was confirmed by the Tribunal. The said case rests on its own facts. In the present case, the Commissioner of Income Tax had denied the grant of interest on specific grounds which had been indicated in the order itself and it was after arriving at a conclusion that such a power is vested with the Commissioner, that this Court had upheld the view expressed by the Commissioner. In the said circumstances, we do not think that the decision in CIT, Thiruvananthapuram v State Bank of Travancore (supra) is an authority to review the judgment.
Issues:
1. Review of judgment on denial of interest under section 244A of Income-tax Act, 1961. 2. Application of earlier Division Bench judgment to the present case. 3. Interpretation of Section 244A (1) and (2) in relation to delay in refund proceedings. 4. Evaluation of the scope of Section 244A (2) and exclusion of delay attributable to the assessee. 5. Consideration of specific grounds for denial of interest by the Commissioner of Income Tax. Analysis: 1. The review petition was filed to challenge the judgment denying interest under section 244A of the Income-tax Act, 1961. The petitioner contended that a Division Bench judgment on a similar subject matter should have been considered during the hearing. The petitioner relied on the case of Commissioner of Income-tax v State Bank of Travancore, where interest was allowed due to delays in correcting TDS certificates. 2. The petitioner argued that since a Division Bench had decided a similar case favorably, the same benefit should apply in the present case regarding the denial of interest under section 244A. However, the Court upheld the Chief Commissioner's decision that interest was not payable for delays in rectifying TDS certificate defects. 3. The Court examined Section 244A (1) and (2) and opined that interest is payable if delays are due to the department, but not if delays relate to finalizing returns. The Court found that delays in curing TDS certificate defects could not be attributed to the assessee for the purpose of interest calculation. 4. The Court considered the substantial delay and the statutory provision allowing the exclusion of interest if refund proceedings are delayed due to the assessee. The judgment in the Commissioner of Income-tax v State Bank of Travancore case was evaluated for its applicability to the current situation. 5. The Court noted that the denial of interest by the Commissioner of Income Tax was based on specific grounds, and it upheld this decision. The Court emphasized that each case must be decided on its own facts and declined to apply the judgment in the Commissioner of Income-tax v State Bank of Travancore case to review the current judgment. In conclusion, the review petition was dismissed, and the judgment denying interest under section 244A of the Income-tax Act, 1961, was upheld based on the specific grounds provided by the Commissioner of Income Tax in the present case.
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