2018 (11) TMI 1243 - AT - Income Tax

Interest u/s 244A - Held that - CIT(A) has directed the AO to allow the interest u/s 244A upto date of refund and excluding interest component including in the refund granted earlier in computing base figure for the present working of interest u/s 244A of the Act. The matter of controversy has rightly been adjudicated in favour of the assessee by CIT(A). The issues are squarely covered by the decision of the assessee s own case 2011 (1) TMI 1536 - ITAT MUMBAI . No distinguishable facts and law have been produced before us by revenue from deviating the finding of the CIT(A). We uphold the finding of the CIT(A) on these issues and decide these issues in favour of the assessee against the revenue.

Summary

Issues:
1. Challenge to the decision of CIT(A) regarding interest under section 244A of the Income Tax Act.
2. Interpretation of provisions of section 244A for calculation of interest.

Issue 1:
The revenue challenged the decision of the CIT(A) regarding the entitlement of the assessee to interest under section 244A of the Income Tax Act. The revenue contended that the assessee was only entitled to simple interest as per the provisions of section 244A. However, the assessee argued that the case was covered in their favor by the decision of the Bombay High Court in a related case and by the assessee's own case decided by the ITAT for other assessment years. The CIT(A) considered the submissions and provisions of section 244A, which entitle the assessee to receive simple interest calculated at the prescribed rate for the period from the start of the assessment year to the date of refund. The CIT(A) directed the AO to allow interest u/s 244A up to the date of refund, excluding any interest component already included in the refund. The Tribunal upheld the CIT(A)'s decision, stating that the matter was rightly adjudicated in favor of the assessee based on previous decisions and no new facts or laws were presented by the revenue to deviate from the CIT(A)'s finding.

Issue 2:
The second issue involved the interpretation of provisions of section 244A for the calculation of interest. The Tribunal analyzed the CIT(A)'s decision in light of the provisions of section 244A, which specify the entitlement of the assessee to simple interest on refunds. The Tribunal found that the CIT(A) correctly applied the provisions and directed the AO to calculate interest u/s 244A up to the date of refund while excluding any interest component already included in the refund. The Tribunal concluded that the issues were resolved in favor of the assessee based on previous decisions and upheld the CIT(A)'s findings. Consequently, the appeal filed by the revenue was dismissed by the Tribunal.

In conclusion, the Tribunal upheld the decision of the CIT(A) regarding the entitlement to interest under section 244A and the calculation of interest, ruling in favor of the assessee against the revenue. The judgment emphasized the importance of adhering to the provisions of the Income Tax Act and previous decisions in similar cases to ensure a fair and just outcome in tax matters.