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TMI Blog2024 (8) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest, if any, paid u/s 140A towards the interest chargeable under this section and thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax so paid together with the advance tax paid falls short of the assessed tax. Thus, considering that specific provision of the Act and the specific acceptance of the fact by the AO in the remand report that the assessee was not granted the credit of taxes while calculating the interest u/s. 234B of the Act and that too without referring to any adverse comment in the remand report. Therefore, considering the specific provision in law and acceptance of the error in calculation of interest u/s. 234B of the Act the ld. AO is directed to give the credit of the taxes paid by the assessee. As per the computation sheet given in the remand report and the interest based on the chart given by assessee we direct the ld. AO to give credit of payment of tax for which credit was not granted while computing the interest as provision of section 234B Assessee submitted that based on the non disputed facts the assessee is eligible to have reduction in interest u/s. 234B charged by the ld. AO for an amount for a year about ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has raised following grounds: - 1. Under the facts and circumstances of the case, the order passed by the Ld. CIT(A)-2 on 11/08/2023 u/s. 250 of the Act, confirming the order giving appeal effect passed by the Ld. AO on 25/04/2018, is perverse, bad-in-law and is passed in ignorance of the powers and obligations entrusted upon the appellate authority, and therefore, it deserves to be quashed 2. Under the facts and circumstances of the case, the Ld.CIT(A)-2 has grossly erred in law by condoning the actions of the AO who, while computing the interest due u/s. 234B, has not considered interest on Rs. 10.80 Crore from date of deposit till the date of assessment during the passing of appeal effect order dated 25.04.2018. The Ld. CIT(A) has grossly erred in confirming the aforementioned actions of the Ld. AO and therefore this impugned appellate order deserves to be quashed, and the interest due to the appellant be recalculated and duly disbursed. 3. Under the facts and circumstances of the case, the Ld. CIT(A)-2 has grossly erred in law by not giving interest due u/s. 244A on refund amount, as the same was not only miscalculated by the Ld. AO but the erroneous calculations were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of months Rate(%) Interest 28.04.2014 59,70,290 23 12 13,73,259 16.03.2015 50,00,000 21.03.2015 1,00,00,000 24.03.2015 2,50,00,000 25.03.2015 5,60,00,000 31.03.2015 1,20,00,000 March, 2015 10,80,00,000 12 12 1,29,60,000 Total 1,43,33,259 INCOME TAX COMPUTATION FORM TAX CALCULATION 1. Gross Tax 17,29,34,475 2. Rebate 3. Surcharge 86,46,724 4. Education Cess 54,47,436 5. Tax credit u/s 115JAA/15JD 6. Relief u/s 89(1) 90 / u/s 91 7. Net Tax 18,70,28,635 8. Interest u/s 234A 8a. Delay Period 9. Interest u/s 234B 2,17,15,825 10. Interest u/s 234C 88,69,100 11. Gross Demand 21,76,13,560 TAXES PAYMENT DETAILS 1. TDS/TCS 63,424 2. Advance Tax 60,00,000 3. Self Assessment Tax 20,31,62,001 4. Regular Assessment Tax 22,70,48,201 5. Amount already refunded 0 6. Total Tax paid 22,71,11,625 DIVIDEND DISTRIBUTION TAX DETAILS 1. Additional Income Tax And Interest Payable on Distributed Profits 0 2, Additional Income Tax And Interest Paid 0 FINAL DETAILS 1. Total tax and Interest Payable -9498065 2. Interest u/s 244A 0 3. Interest made u/s 244A recovered 4. Delay period attributable to Assessee 5. Interest u/s 234D 6. Interest u/s 220 DEMAND/RE 1. Net amount refundable (- )94,98,070/- In Words Rup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment tax 25.03.2015 5,60,00000 Self-Assessment tax 31.03.2015 1,20,00000 Self-Assessment tax 15.03.2016 1,11,56,690/- Demand Adjusted by PD account on 15.03.2016 31.01.2017 67,29,510/- Demand Adjusted out of refund proceed for AY 2012 - 2013 vide order 31.01.2017 This issue was not before the Hon'ble ITAT while passing order dated 08-12-2017 in ITA No. 436/Jodh/2017 and 08-02-2018 in ITA No. 535/Jodh/2017. In fact in first round of appeal this issue was not raised by the appellant at any stage. Therefore, the order of the AO is found to be in accordance with directions of the ITAT. The new issue of not allowing interest on self assessment tax deposited before passing of the assessment order raised by the appellant is raised for the first time in the appellate proceedings and the issue is not emanating from the order passed by the AO while giving effect to the order of the Hon'ble ITAT. While passing appeal effect order the AO was justified in following the order of the ITAT and the appellant has not pointed out any mistake in this regard. The appellant has raised this issue for the first time in the modified ground of appeal based on remand report received from the AO. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in ground no. 2, this ground is also found to be unacceptable and rejected. This ground of appeal is treated as dismissed. 5. As both the grounds of the assessee was dismissed feeling dissatisfied from the order of the ld. CIT(A) the assessee has preferred the present appeal on the grounds as stated herein above in para 2 challenging the finding of the ld. CIT(A). In support of the grounds raised for interest computed u/s. 234B and interest receivable u/s. 244A of the Act the ld. AR of the assessee has filed a detailed computation sheet herein below:- S. No. Computation of Total Income Income as per appeal effect order dated 25.04.2018 Revised calculation Rs. 1 Total Income (as per appeal effect order dated 25.04.2018 ) 57,64,48,250 57,64,48,250 2 Tax @ 30% 17,29,34,475 17,29,34,475 3 Surcharge @ 5% 86,46,724 86,46,724 4 Total Amount for Educational cess 18,15,81,199 18,15,81,199 5 Educational Cess @ 3% 54,47,435 54,47,435 6 Total Tax Due 18,70,28,635 18,70,28,635 7 Interest U/s 234B *(18,70,28,635-TDS 63,424-Advance Tax 60,00,000)* 12% 2,17,15,825 2,17,15,825 8 Excess Interest charged u/s 234B (Table A) (143,33,259) 9 Interest u/s 234C 88,69,101 88,69,101 10. Total Interest (8+9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal before the ld. CIT(A). In the remand report the ld. AO categorically confirmed that no interest has been provided to the assessee on the above deposited amount till the date of assessment. Thus, when the matter was clear and confirmed by the ld. AO in the remand proceeding not considering that fact is bad in law as well as on facts and therefore, the assessee is eligible to get the relief of interest on the above amount of Rs. 10,80,00,000 paid in March 2015 and Rs. 59,70,290/- paid on 28.04.2014 which has not been considered while charging interest u/s. 234B of the Act. The relevant part of the remand report here-in-below:- A. Ground No. 1- The Ld. AO has erred in re-computing the interest charged after giving credit of seized cash from 1 request letter dated 19 March 2014 to till the dated of the assessment order on 02 March 2016 as per direction of Hon'ble ITAT vide order dated 08 February 2018. Observations: The submission of the assessee has been considered. In the case of the assessee, the Hon'ble ITAT vide order no. 535/Jodh/2017 dated 08.02.2018 allowed the interest on cash seized lying with the department from the date of first letter of authorization i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of interest on interest for delayed period considering facts, circumstances and settled legal position on placed on record. Observations: The above ground of appeal of the assessee relates to the grant of interest available u/s 244A w.r.t. the refund of excess interest u/s 234B. The assessee has submitted that though the assessee is eligible for interest u/s 244A, the AO has only granted refund of interest u/s 234B without granting interest u/s 244A on such refund. With respect to the above submission of the assessee, it is submitted that in the case of the assessee, the AO passed Order giving Appeal Effect dated 25.04.2018 pursuant to the order of the Hon'ble ITAT vide order no. 535/Jodh/2017 dated 08.02.2018. In the above order, AO granted refund to the assessee of Rs. 94,98,065/- on account of excess interest charged u/s 234B and no interest u/s 244A was granted to the assessee. Further, it is submitted that though Section 244A provides for payment of interest on the amount of tax paid in excess of the amount of assessed tax but, it clearly provides that no interest shall be payable if the amount of refund is less than ten per cent of the tax. In the case of the assessee, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax. Explanation 1. In this section, assessed tax means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of, (i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income; (ia) any relief of tax allowed under section 89; (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India; (iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; (iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under sub-section (6B) of section 245D, the amount on which interest was payable under clause (b)has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly. (3) Where, as a result of an order of reassessment or re-computation under section 147 or section 153A, the amount on which interest was payable in respect of shortfall in payment of advance tax for any financial year under subsection (1) is increased, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the 1st day of April next following such financial year and ending on the date of the reassessment or recomputation under section 147 or section 153A, on the amount by which the tax on the total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income determined under sub-section (1) of section 143 or on the basis of the regular assessment as referred to in sub-section (1), as the case may be. (4) Where, as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is eligible to have reduction in interest u/s. 234B charged by the ld. AO for an amount of Rs. 1,43,33,259/- for a year about or so. Based on the finding so recorded and considering the actual date of payment of taxes the ld. AO is directed to reduce the interest wrongly computed u/s. 234B of the Act and grant the refund arising out of this error in charge of interest u/s. 234B of the Act. In terms of these observations the ground no. 1 2 raised by the assessee is allowed. 8. Apropos to the ground no. 3 4 of the Act the bench noted that the assessee was denied the benefit of the interest u/s. 244A of the Act only on the ground that the net refund due and calculated by the lower authority for an amount of Rs. 94,98,065/- which is less then 10% of the total demand raised upon the assessee for an amount of Rs. 18,70,28,635/-. On this issue the bench noted that if the interest charged by the ld. AO in excess for an amount of Rs. 1,43,33,259/- u/s. 234B of the Act is considered based on the finding recorded by us in ground no. 1 2 then the refund amount comes to Rs. 2,38,31,324/- which is more then 10% of tax demand of Rs. 18,70,26,635/- (APB-199-Scaned herein above). Even t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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