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TMI Blog2021 (2) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee that the said refund is to be adjusted against the correct amount of interest payable thereof to be computed as per the directions of the ld. CIT(A) and only the balance amount is to be adjusted against tax paid. Accordingly, unpaid amount is the tax component and therefore, the assessee would be entitled for claiming interest on the tax component remaining unpaid. In our considered opinion, the same would not tantamount to interest on interest as alleged by the ld. CIT(A). Similarly, the refund granted to the assessee in July 2016 is to be adjusted against the correct interest payable on the tax amount remaining unpaid and balance towards tax component. Accordingly, we direct the ld. AO to compute the correct amount of interest all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee : Shri Yogesh Thar For the Revenue : Shri V.Vinodkumar ORDER PER M. BALAGANESH (A.M): 1. These cross appeals in ITA Nos.473/Mum/2016, 1121/Mum/2016, 474/Mum/2016 1120/Mum/2016 for A.Yrs.2008-09 2007-08 respectively arise out of the order by the ld. Commissioner of Income Tax (Appeals)-13 in appeal Nos.CIT(A)-13/ACIT-7(1)(1)/211/2015-16, CIT(A)-13/ACIT-7(1)(1)/212/2015-16, CIT(A)-12/ACIT-6(3)/28/2010-11 dated 11/12/2015 28/06/2011 respectively (ld. CIT(A) in short) against the order of assessment passed u/s.115 WE(3) r.w.s. 254 of the Income Tax Act, 1961 115 WE(3) of the Act FBT (hereinafter referred to as Act) dated 02/12/2009 20/08/2010 respectively by the ld. Addl. Commissioner of Income Tax, Range-6(3), Mumbai (hereinafter ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 allowed interest u/s.244A of the Act on advance tax and self-assessment tax paid by the assessee from first day of assessment year and date of payment of self-assessment tax respectively for both the years till the date of grant of refund. However, we find that the ld. CIT(A) dismissed the assessee s ground for allowing interest on the said amount for the period of delay on the alleged ground that it amounts to compensation by way of interest on interest. 4. Aggrieved by the aforesaid order of the ld. CIT(A), the assessee is in appeal before us seeking correct allowance of interest as per law u/s.244A of the Act and revenue is in appeal challenging the order of the ld. CIT(A) directing the ld. AO to grant interest on self-assessment ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2013 and it was pleaded by the assessee that the said refund is to be adjusted against the correct amount of interest payable thereof to be computed as per the directions of the ld. CIT(A) and only the balance amount is to be adjusted against tax paid. Accordingly, unpaid amount is the tax component and therefore, the assessee would be entitled for claiming interest on the tax component remaining unpaid. In our considered opinion, the same would not tantamount to interest on interest as alleged by the ld. CIT(A) in para 4.2 on his order. Similarly, the refund granted to the assessee in July 2016 is to be adjusted against the correct interest payable on the tax amount remaining unpaid and balance towards tax component. We find that this is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that interest on self-assessment tax is not payable from the date of payment of tax till the date of receipt of refund as the delay is attributable to the assessee because assessee did not claim refund in the return of income. In this regard, we find that the ld. AR had submitted that delay is not at all attributable to the assessee and that the provisions of Section 244A(2) are not applicable as the assessee while filing its return for A.Yrs. 2007-08 and 2008-09 had indeed made a claim in the return of income by way of notes to the return of income and had also clarified in the said note that tax has been paid on certain fringe benefits only out of abundant caution. We find that this fact has even been noted by the ld. CIT(A) in para 3.3 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is payable from date of payment of tax on self assessment to date of refund of amount under section 244A - Held, yes [Paras 7, 8 and 12][In favour of assessee] 11. Similar proposition was laid down by the Hon ble Jurisdictional High Court in assessee s own case in Income Tax Appeal No.1 of 2004 dated 13/06/2018. 12. Respectfully following the aforesaid decisions of Hon ble Jurisdictional High Court, we hold that the grounds raised by the revenue are completely devoid on merits and are hereby dismissed. 13. We also find that the tax effect involved in the revenue appeals for A.Ys.2007-08 and 2008-09 are less than the monetary limits prescribed by CBDT for preferring appeals before this Tribunal by the revenue and hence, deserves to be dismi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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