9911796707
TMI Blog2024 (9) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... t adjusted towards the outstanding interest and then against the tax payable. CIT(A), in first appeal has rightly allowed the claim of the assessee in directing the assessing officer to examine the computation of refund including interest u/s. 244A. No fault or any infirmity is found in the impugned order. The impugned order is sustained. The aforesaid points are accordingly determined against the appellant revenue and in favour of the respondent assessee. The appeal is thus, liable to be dismissed. - Shri Br Baskaran, Accountant Member And Shri Sunil Kumar Singh, Judicial Member For the Assessee : Shri. C. Naresh For the Revenue : MS. Madhu Malati Ghosh (CIT-DR) ORDER PER SUNIL KUMAR SINGH (J.M): The facts and law applicable in all these three appeals are similar and issues arising are identical. The decision on facts and law for one appeal for any assessment year would answer the issue involved in the other two years. Hence, all the three appeals are being decided by the common order for the sake of brevity. The facts only in ITA No. 4318/MUM/2023 for the A.Y. 2013-14 are being narrated as under: ITA No. 4318/MUM/2023 (Assessment Year : 2013/-14) 1. The revenue appeal ITA NO. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision in the case of Bank of Baroda which is based on the same principle rationale as held in decision of Hon'ble Delhi High Court in the case of India Trade Promotion Organization (ITPO) vs CIT despite the fact that Hon'ble Supreme Court in Commissioner of Income Tax v Gujarat Fluoro Chemicals [2013] 358 ITR 291/2014] 222 Taxman 349/42 taxmann.com 1 categorically clarified that it is only that Interest provided for under the statute which may be claimed by an assessee from the Revenue and no other interest on such statutory interest? ( ⅲ ) Whether on the facts and circumstances of the case, the Ld.CIT(A) is justified in allowing the assessee's ground whereby it was suggested that for calculating interest u/s 244A(1), the refund earlier granted should be adjusted against interest component and balance if any, should be adjusted against principal refund amount and such net principal refund amount should be considered whereas no such methodology was laid down in any of the decisions on which the Hon'ble ITAT relied on in the case of Bank of Baroda? 5. In response to the notice issued by the tribunal, learned DR appeared and participated in the proceedings. 6. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comprising therein. If, the adjustment is made first towards the tax portion, the interest due to the assessee when subsequent amount of refunds are granted, would be less. If the adjustment is made first towards the interest portion, and when the subsequent refunds are granted, the interest portion payable to the assessee would be higher for the simple reason that in that circumstances that tax portion remains intact. This tax portion which remained intact would result into further interest thereon. There is no provision under the income tax act which is shown by either that there is a specified chronology for adjustment of refund granted to the assessee. However it is shown to us that when the tax is payable by the assessee, there is a specific chronology provided under the provisions explanation to section 140A of the act. It provides that where the amount paid by the assessee as self assessment falls short of the aggregate of the tax, interest and fee, the amount so paid shall first be adjusted towards the fee payable, and thereafter towards the interest payable and the balance if any shall be adjusted towards the tax payable. Honourable Delhi High Court in case of India trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest payable under Sections 234B and 234C that interest under Section 220(2) is calculated from the date mentioned in the notice of demand till the date of actual payment. Under Explanation to Section 140A(1), it is stipulated where the amount paid by an assessee under self-assessment falls short of the aggregate amount of tax and interest aforesaid, the amount paid shall first be adjusted towards the interest payable and the balance, if any, shall be adjusted towards the tax payable. The interpretation given by us follows the same principle, when Revenue defaults and makes part payment of the amount refundable. The aforesaid interpretation also ensures that the Assessing Officer/Revenue refund the entire amount, which is due and payable, including interest payable under Section 244A. It discourages part payment. There is no other provision under the Act under which an Assessing Officer/Revenue can be made liable to pay interest when part payment is made and the entire amount, which is refundable is not paid to the assessee. Otherwise the Assessing Officer/Revenue can refund the principal amount and not pay the interest component under Section 244A for an unlimited period with im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 244A of the Act. No fault or any infirmity is found in the impugned order. The impugned order is sustained. The aforesaid points are accordingly determined against the appellant revenue and in favour of the respondent assessee. The appeal is thus, liable to be dismissed. 12. This appeal has been preferred against the impugned order dated 07.08.2023 passed in Appeal no. NFAC/2011-12/10117004. The grounds involved herein are similar except the figures. The common ground has already been considered by us in our conclusive finding arrived at ITA No. 4318/MUM/2023. The same shall apply mutatis mutandis in this appeal. ITA No. 4320/MUM/2023 (Assessment Year : 2001-02) 13. ITA No. 4320/MUM/2023 for A.Y. 2001-02 has been preferred against the impugned order dated 18.07.2023 passed in Appeal no. NFAC/2000-01/10053729. The grounds involved herein are also similar except the figures. The common ground has already been considered by us in our conclusive finding arrived at ITA No. 4318/MUM/2023. The same shall apply mutatis mutandis in this appeal. 14. In the result, the three appeals ITA no. 4318/MUM/2023, 4319/MUM/2023 4320/MUM/2023 are dismissed. The impugned orders dated 18.07.2023, 07.08. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
