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TMI Blog2024 (5) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... when a refund has already been granted but subsequent to the rectification order, the refund is increased or decreased then the interest given earlier also needs to be increased or decreased. However, in the instant case when the assessee was originally granted the refund no interest was given because the refund was less than 10% of the total tax liability. It was only in the rectification order dated 12.07.2022 that the refund of tax component was given. After considering the facts and circumstances of the case, and also considering the set off of MAT credit available with the assessee as on the beginning of the assessment year, we find sufficient merit in the contentions of assessee that the interest u/s. 244A of the Act in the case of the for AY 2017-18 needs to be computed from 01.04.2017 to the date of grant of refund. Accordingly, the effective issue raised in the instant appeal is allowed. Thus we hold that the assessee indeed is entitled for interest on unpaid interest and accordingly all the grounds raised by the assessee in this regard are allowed. - Shri Rajpal Yadav, Vice President And Dr. Manish Borad, Accountant Member For the Appellant : Shri S. K. Tulsiyan, Advoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respectively. The case of the assessee scrutinized by issuing notice u/s. 143(2) of the Act and assessment order passed on 29.05.2021. Thereafter, rectification petition was filed on 06.06.2022 for correcting the MAT computation after giving MAT credit available for set off u/s. 115JJAA of the Act. Ld. AO passed rectification order on 12.07.2022 and issued a refund of Rs. 25,72,14,141/- which comprised of the tax component of Rs. 25,06,86,616/- and interest component of Rs. 65,27,525/-. So far as the refund of tax component is concerned, there is no dispute before us. The matter relates only to the interest component. As per the Ld. Counsel for the assessee, Ld. AO has given the refund of only for five months but the assessee is entitled to the interest of 70 months starting from 1st April, 2017. 5. The assessee challenged the rectification order before the Ld. CIT(A) but he declined to deal with the issues observing that assessee had not raised this issue in the rectification application and, therefore, there is no need for adjudication of the issue relating to interest u/s. 244A. Aggrieved, assessee is now in appeal before this Tribunal. 6. Ld. Sr. counsel for the assessee apart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31,49,723/-. No interest u/s. 244A of the Act was given because the TDS was less than 10% of the total tax liability. Thereafter, on 06.06.2022, assessee moved a rectification application and one of the point of its application was that the assessee is entitled to substantial MAT credit brought forward from earlier years. The details of such MAT credit of Rs. 33,08,57,877/- is mentioned below: 9. On going through the above details of MAT credit, we note that major amount that except for AY 2010-11 all the other amounts of MAT credit are either after the filing of original return of income or during the course of assessment proceedings for the year under appeal. It seems that assessee was not aware of the eligible MAT credit which it was entitled prior to the date of filing the final revised return on 30.03.2019. However, the correctness of the MAT credit of Rs. 33,08,57,877/- is not in dispute and has been accepted by the AO. Since the MAT credit available for set off is from preceding assessment years is available to the assessee and has been accepted by the AO in the computation sheet and has given the revised tax component of Rs. 25,06,86,616/-, the only point to be examined is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment or reassessment, the assessee shall be entitled to receive, in addition to the interest payable under sub-section (1), an additional interest on such amount of refund calculated at the rate of three per cent per annum, for the period beginning from the date following the date of expiry of the time allowed under sub-section (5) of section 153 to the date on which the refund is granted.] [(1B) Where refund of any amount becomes due to the deductor in respect of any amount paid to the credit of the Central Government under Chapter XVII-B, such deductor shall be entitled to receive, in addition to the said amount, simple interest thereon calculated at the rate of one-half per cent for every month or part of a month comprised in the period, from the date on which (a) claim for refund is made in the prescribed form; or (b) tax is paid, where refund arises on account of giving effect to an order under section 250 or section 254 or section 260 or section 262, to the date on which the refund is granted.] (2) If the proceedings resulting in the refund are delayed for reasons attributable to the assessee 1 [or the deductor, as the case may be,] whether wholly or in part, the perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification order, the refund is increased or decreased then the interest given earlier also needs to be increased or decreased. However, in the instant case when the assessee was originally granted the refund no interest was given because the refund was less than 10% of the total tax liability. It was only in the rectification order dated 12.07.2022 that the refund of tax component of Rs. 25,06,86,616/- was given. After considering the facts and circumstances of the case, and also considering the set off of MAT credit available with the assessee as on the beginning of the assessment year, we find sufficient merit in the contentions of Ld. Counsel for the assessee that the interest u/s. 244A of the Act in the case of the for AY 2017018 needs to be computed from 01.04.2017 to the date of grant of refund. Accordingly, the effective issue raised in the instant appeal is allowed. 11. Our view is further supported by various judgment referred by the Ld. Counsel for the assessee including that of (i) UOI Vs. Tata Chemicals ltd. [2014] 43 taxmann.com 240 (SC); (ii) CIT Vs. Birla Corporation ltd. [2016] 66 taxmann.com 276 (Cal); (iii) CIT Vs. Cholamandalam Investment Finance Co. Ltd. [2008] ..... X X X X Extracts X X X X X X X X Extracts X X X X
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