9911796707
TMI Blog2011 (8) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... undable, the assessee had to be refunded tax with interest for the entire month of December, 2003 - circular No.261 dated 8th August, 1979 issued by the Board to the effect that the date of presenting the cheque should be the date of payment supports the contention of the assessee - Decided in favor of the assessee - 4994 OF 2010 - - - Dated:- 11-8-2011 - J.P. DEVADHAR, A.A. SAYED, JJ. Mr. Suresh Kumar for the Appellant. Mr. Subhash Shetty for the Respondent. ORAL JUDGMENT PER J.P. DEVADHAR, J. 1. Not on board. Taken up on board by consent of the parties. 2. The appeal is admitted on the following question of law : Whether on the facts and in the circumstances of the case, ITAT was justified in hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid order, the revenue has filed the present appeal. 7. According to the Counsel for the revenue, though the assessee had deposited the cheque towards the tax demand on 29th December, 2003, the amount was actually credited to the Central Government account on 1st January, 2004 and therefore, on grant of refund, the assessee was entitled to interest from January, 2004. In support of the above contention, Counsel for the revenue relied upon a decision of Rajasthan High Court in the case of Rajasthan State Electricity Board Vs. Commissioner of Income Tax, (2006) 281 ITR 274 and the decision of the Delhi High Court in the case of CIT Vs. Sutlej Industries Ltd. (2010) 325 ITR 331. 8. Under section 244A (1)(b) of the Act, interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For calculating interest under Section 244A(1)(b) of the Act the relevant date is the date of payment of tax and not the date on which the amount of tax collected is credited to the account of the Central Government by the agent of the Central Government. Therefore, in the facts and circumstances of the present case, the decision of the ITAT in holding that the assessee had paid the taxes on 30th December, 2003 cannot be faulted. 10. Once it is found that the tax was paid on 30th December, 2003, then as per the rule 119A(b), of the Income Tax Rules, on the tax becoming refundable, the assessee had to be refunded tax with interest for the entire month of December, 2003. Thus, in the facts of the present case, no fault can be found with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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