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2021 (4) TMI 397 - AT - Income TaxInterest under section 244A(1)(b) - Disallowance of the claim of interest on Assessment Year paid by the assessee - claim of interest was disallowed purely on the ground that the amendment to section 244A sub-section (a) (aa) of the Act was made w.e.f. 01.06.2016 - HELD THAT - Since the present appeal pertains to the Assessment Year 2013-14. Therefore, the amended provisions of section 244A of the Act could not be made applicable for the year under appeal. As relying on Punjab Chemical Crop. Protection Ltd. 2014 (8) TMI 971 - PUNJAB HARYANA HIGH COURT we direct the Assessing Officer to allow the claim of interest on self-assessment tax as made by the assessee in accordance with law. Thus, grounds raised by the assessee are allowed.
Issues Involved:
1. Entitlement to interest under Section 244A on self-assessment tax for the assessment year 2013-14. 2. Applicability of the amendment to Section 244A effective from 01 June 2016. 3. Relevance of precedents from other High Courts regarding interest on self-assessment tax. Issue-wise Detailed Analysis: 1. Entitlement to Interest under Section 244A on Self-Assessment Tax: The primary issue in this appeal is whether the assessee is entitled to interest on the self-assessment tax paid for the assessment year 2013-14 under Section 244A of the Income Tax Act, 1961. The Assessing Officer (AO) had disallowed the claim for interest on the self-assessment tax, which was upheld by the Commissioner of Income Tax (Appeals) [CIT(A)]. The Tribunal noted that the CIT(A) had denied the claim based on the amendment to Section 244A, which became effective from 01 June 2016. The Tribunal examined precedents and concluded that the assessee is entitled to interest on self-assessment tax despite the amendment, as the assessment year in question is prior to the amendment date. 2. Applicability of the Amendment to Section 244A Effective from 01 June 2016: The CIT(A) had disallowed the interest claim on the grounds that the amendment to Section 244A, which introduced sub-sections (a) and (aa), was effective from 01 June 2016 and thus not applicable to the assessment year 2013-14. The Tribunal, however, found that the amendment does not retrospectively affect the entitlement to interest on self-assessment tax for periods before its effective date. The Tribunal emphasized that the amendment should not be applied to the assessment year 2013-14, and the assessee's claim should be considered under the provisions as they stood before the amendment. 3. Relevance of Precedents from Other High Courts: The Tribunal reviewed several judgments from various High Courts, including the Punjab & Haryana High Court in CIT vs Punjab Chemical & Crop Protection Ltd., the Bombay High Court in Stockholding Corporation of India Vs N.C. Tewari, and the Calcutta High Court in CIT Vs Birla Corporation Limited. These judgments consistently held that interest under Section 244A is allowable on self-assessment tax payments. The Tribunal noted that these precedents support the assessee's claim for interest on the self-assessment tax, reinforcing that the authorities below should have allowed the interest as claimed by the assessee. Conclusion: The Tribunal, after considering the arguments and relevant legal precedents, directed the Assessing Officer to allow the claim of interest on self-assessment tax as per the law applicable before the amendment effective from 01 June 2016. The Tribunal allowed the appeal of the assessee, emphasizing that the assessee is entitled to interest on the self-assessment tax paid for the assessment year 2013-14. The decision was pronounced on 08 April 2021 at the conclusion of the virtual hearing.
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