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TMI Blog2014 (6) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... on facts and law in partly upholding the Assessing Officer's order in disallowing Rs. 1,38,036 out of interest disallowance of Rs. 26,08,125 by applying rule 8D(2)(ii) on account of investments in shares, which are investments made out of own and surplus funds 2. learned CIT(A) erred on facts and law in upholding the Assessing Officer's order in disallowing Rs. 3,70,027 out of expenses, being one half percentage of average value of investment in relation to exempt income by applying rule 8D(2)(iii), which are investments made out of own and surplus funds. 3. The learned CIT(A) erred in upholding the action of Assessing Officer in not granting interest u/s 244A on the self-assessment tax paid, on fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the entire facts, he has restricted the disallowance at Rs. 1,38,036, out of disallowance on account of interest of Rs. 26,08,125. Therefore, the findings given by the learned Commissioner (Appeals) should not be set aside. 4. We have carefully considered the rival contentions. On a perusal of the finding of the learned Commissioner (Appeals), we find that he has analysed the assessee's interest expenditure vis-a-vis the utilisation of the loan for the purpose of business. He has also noted the fact that investment to the tune of Rs. 1,36,14,368, has been paid from cash credit bank account and, therefore, interest paid on such cash credit account and working capital has to be disallowed. Based on these findings, he has restricted the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is upheld on legal and factual grounds. Thus, ground no.1 and 2 are dismissed. 5. Now, we take up the issue raised in ground no.3 i.e., non- granting of interest under section 244A, on account of self-assessment tax paid. 6. The assessee's case before the learned Commissioner (Appeals) had been that it had paid self-assessment tax of Rs. 4.50 crores in the month of July 2008, on estimated basis, because it has not paid advance tax during the year. The return of income was filed on 8th January 2009. The Assessing Officer, while granting and issuing refund, had not allowed interest on the self-assessment tax for the entire period from the date of its payment till the issue of refund. On behalf of the assessee, reliance was placed on the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Commissioner (Appeals). 9. After carefully considering the rival submissions and on a perusal of the orders of the authorities below, we find that the basic reason for declining the grant of interest under section 244A, on the self- assessment tax paid by the assessee is that, the assessee has not paid the self-assessment tax along with the return of income, but prior to the date of filing of the return of income and that to be on the basis of estimation and, therefore, it is not a tax within the ambit of the provisions of section 140A, so as to be entitled for interest under section 244A. In our view, such an interpretation for denying the interest under section 244A, in the present case, is not tenable. Section 140A(1), reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclude advance tax; any tax deducted or collected at source; any tax credited; any tax claimed to be set-off in accordance with the provisions of section 115JAA; or any relief of tax or deduction of tax claimed under section 90, 90A or section 91. Thus, the self-assessment tax includes any amount of tax which has already been paid under the provisions of this Act. In this case, the assessee has paid the tax for the purpose of its taxable income for the assessment year 2008-09, in the month of July 2008. The due date for filing the return of income was 30th September 2008. If the tax has been paid prior to the date of filing of return of income, then it has to be construed as amount of "tax already paid" as contemplated in clause (i) of sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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