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TMI Blog2016 (3) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is available to the assessee in view of DTAA is to be taken into account and if there is any excess which the assessee has paid into the Indian Treasury, then, he is entitled to the refund of the same which would also carry interest in terms of Section 244A of the Act. - Income Tax Appeal No. 2333 of 2013 - - - Dated:- 23-2-2016 - M. S. Sanklecha And B. P. Colabawalla, JJ. For the Appellant : Mr. Suresh Kumar For the Respondent : Mr. Niraj Sheth a/w Atul Jasani ORDER P. C. 1. This Appeal under Section 260A of the Income Tax Act, 1961 (the Act) challenges the order dated 10th July, 2013 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order is in respect of Assessment Year 2003-04. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest under Section 244A of the Act was payable, as the excess tax paid which was refunded, was a consequence of Double Tax Avoidance Agreement (DTAA) relief granted to the respondent assessee. According to the Assessing Officer, Section 244A of the Act only grants interest on refund of the tax paid either as advance or by way of deduction at source (TDS). The Assessing Officer held that refund available to the assessee consequent to a DTAA relief in computing the tax payable is not entitled to interest under the Act. 5. Being aggrieved, the respondent assessee carried the issue in an appeal to the Commissioner of Income Tax (Appeals) [CIT(Appeals)]. By an order dated 22nd March, 2012, the CIT(Appeals) held that the DTAA relief by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the refund arises on account of DTA relief under Section 90 of the Act. It is also submitted that if the impugned order of the Tribunal is to be accepted then, the State would have to pay interest on taxes paid to a foreign Government. In view thereof, it is submitted that the appeal should be admitted. 8. The submission on behalf of the Revenue that the impugned order of the Tribunal results in the State paying interest to the respondent assessee in respect of taxes paid to foreign countries and, therefore, not sustainable, is beyond our comprehension. The interest which is being paid in terms of the order of the CIT (Appeals) and the Tribunal is in respect of the advance tax and TDS which has been paid by the respondent assessee in Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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