9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 797 - AT - Income TaxDisallowance of interest - Delay in granting refund - Held that - refund is arising out of TDS and advance tax paid by the assessee and not out of any self assessment tax or any other payment of tax and hence, the assessee is eligible for interest from the 1st day of assessment year till the date of granting refund. The A.O. has allowed interest form 27.03.208 to the date of granting of refund and, therefore, for the period in dispute for which interest should be allowed by the A.O. is from 01.04.2006 to 29.02.2008 i.e. for 23 months on refund of Rs.235.62 lacs. The relevant aspect on which the allowability of interest is denied is this that as to whether there was any delay attributable to the assessee in granting refund. In our considered opinion, since the retraction was made by the assessee immediately after filing the return of income and during the course of assessment proceeding also, it cannot be said that the delay in granting refund is attributable to the assessee in the present case and, therefore, interest is allowable to the assessee for this period also i.e. from 01.04.2006 to 29.02.2008 - Decided in favour of assesee. Assessee is eligible for interest u/s 244A for the entire period for which interest is allowable u/s 244A. There is no period for which the refund was delayed because of reasons attributable to the assessee and hence, no period is required to be excluded for computing interest payable to the assessee u/s 244A. Since, in the present case, the refund is arising partly on account of payment of TDS and advance tax, and the major part of refund is arising out of payment of self assessment tax of Rs.168.30 lacs, interest should be grated to the assessee up to the period 29.02.2008 stating form 01.04.2006 in respect of refund arising out of TDS and advance tax and starting from date of payment of self assessment tax in respect of refund arising out of payment of self assessment tax - Decided in favour of assessee.
Issues Involved:
1. Maintainability of appeal against the order under Section 154. 2. Entitlement to interest on refund under Section 244A from the first day after the end of the relevant previous year to the date of refund. 3. Jurisdiction of CIT(A) in the context of directions issued under Section 244A(2). Issue-wise Detailed Analysis: 1. Maintainability of Appeal Against the Order under Section 154: The appellant argued that the CIT(A) erred in dismissing the appeal against the order under Section 154, which rectified an alleged mistake in not granting interest on the refund under Section 244A from the first day after the end of the relevant previous year to the date of refund. The appellant contended that the AO did not rectify the mistake apparent from the records. The tribunal found that the AO had indeed allowed interest from 27.03.2008 to 20.05.2009, recognizing it as an apparent mistake. Therefore, the tribunal rejected the CIT(A)'s objection that the issue was not a mistake apparent from the record. 2. Entitlement to Interest on Refund under Section 244A: The core issue was whether the assessee was entitled to interest under Section 244A for the period from 01.04.2006 to 26.03.2008. The tribunal noted that the refund was arising out of TDS and advance tax paid by the assessee. The tribunal held that since the retraction of the disclosure was made immediately after filing the return and during the assessment proceedings, the delay in granting the refund could not be attributed to the assessee. Consequently, the tribunal directed the AO to grant interest under Section 244A for the period from 01.04.2006 to 26.03.2008. 3. Jurisdiction of CIT(A) in Context of Directions Issued under Section 244A(2): The CIT(A) had dismissed the appeal on the grounds that the direction issued by the CIT under Section 244A(2) was final and not appealable. The tribunal clarified that the finality of the CIT's decision under Section 244A(2) is qua the AO and not the assessee, as the assessee is not given an opportunity of being heard before the CIT's decision. Hence, the tribunal held that the appeal was maintainable and the CIT(A)'s objection was invalid. Additional Points: - In the case of M/s. Sarjan Realities Ltd., the tribunal noted that part of the refund arose from self-assessment tax. Interest was directed to be granted from 01.04.2006 for the portion arising out of TDS and advance tax, and from the date of payment for the portion arising out of self-assessment tax. - The tribunal dismissed the remaining appeals as infructuous in light of the decisions on the primary appeals. Conclusion: The tribunal allowed the appeals of the assessees, directing the AO to grant interest under Section 244A for the disputed periods, and dismissed the remaining appeals as infructuous. The order emphasized the importance of granting interest on refunds from the earliest applicable date, unless the delay is attributable to the assessee.
|
