9911796707
TMI Blog2022 (12) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... terest on income tax refund On the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) [CIT(A)] erred in upholding the withdrawal of interest amounting to Rs.43,71,038 under section 244A of the Income Tax Act, 1961 ("the Act‟) made by the Deputy Commissioner of Income tax, Range 13(1)(1), Mumbai ("the learned AO‟) The Appellant prays that the interest amounting to Rs.43,71,038 to be granted to the Appellant. 2. Ground No. 2 : No jurisdiction of rectification under section 154 of the Act for a debatable issue On the facts and in the circumstances of the case and in law, the CIT(A) erred in upholding the initiation of rectification proceedings by learned AO as there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r delay in refund. As to what should be done in such a situation, we find guidance from section 244A(2) itself which inter alia provides that "where any question arises about the period to be excluded (for which interest is to be declined), it shall be decided by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, whose decision thereon shall be final". Clearly, therefore, final call about the period to be excluded for grant of interest is to be taken by the higher authority and that exercise is admittedly not done in the present case. In this background, we may refer to the following observations in a co-ordinate bench decision in the case of DBS Bank Ltd. vs DDIT [(2016) 157 ITD 476 (Mum)]:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch exercise was carried out at the assessment stage or even at the stage of the rectification proceedings, and it was, therefore, not open to the Assessing Officer, on his own, to decide the period for which interest under section 244A was to be declined. For this reason also, not declining the interest under section 244A for the period of 1.4.2002 to 20.1.2005, was not a mistake apparent on record. In view of the above discussions, and for more reasons than one, the Assessing Officer was in error in passing the impugned order under section 154 on this aspect of the matter as well." 6. We are in respectful agreement with the views so expressed by the co-ordinate bench. Respectfully following the same, we uphold the plea of the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
