2023 (6) TMI 730 - AT - Income Tax

Interest u/s. 244A on self assessment tax paid - Assessee claiming refund - HELD THAT - As in the present case, the assessee is not claiming interest on interest but claiming the refund and the date on which the refund was granted and received up till that period the interest which the trust is entitled to. The contentions of the assessee was not taken into account fully and the calculation which has been done by the assessee as per Section 244A has not been taken into account either by the AO as well as by the CIT(A). Remand back this matter to the file of the Assessing Officer for proper verification and calculation which was placed by the assessee before the Revenue authorities in consonance with Section 244A of the Act. The contentions of the assessee that the interest component should be taken first and thereafter the principal amount needs verification and the same should be verified by the Assessing Officer.

Summary

Issues:
The judgment involves appeals filed by the Assessee against two separate orders passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Years 1982-83 & 1983-84.

Issue 1: Interest on Refund for A.Y. 1982-83
The Assessee filed a rectification application requesting interest u/s. 244A on self-assessment tax paid and regular tax paid, along with additional compensation for delayed interest. The Assessing Officer passed an order under Section 154 determining total income at Rs. Nil, which was challenged by the Assessee before the CIT(A). The Assessee claimed that the refund receivable was wrongly calculated, leading to a request for additional compensation. The CIT(A) erred in rejecting the claim, and the matter was remanded back to the Assessing Officer for proper verification and calculation in line with Section 244A of the Act.

Issue 2: Interest on Refund for A.Y. 1983-84
Similar to the previous issue, the Assessee's claim for interest on refund for A.Y. 1983-84 was remanded back to the Assessing Officer for proper verification and adjudication as per law. The Assessee was granted an opportunity of hearing, and both appeals were partly allowed for statistical purposes.

In conclusion, the judgment addressed the Assessee's claims for interest on refund for both assessment years, emphasizing the proper application of Section 244A of the Income Tax Act. The matter was remanded back to the Assessing Officer for verification and calculation, ensuring the Assessee's rights were upheld in accordance with the law.