9911796707
TMI Blog2024 (11) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... st adjust the refund granted against the interest component and then adjust the balance amount against the principal/tax component and any shortfall thereafter shall be considered for computation of interest payable to the assessee u/s 244A of the Act till the date of grant or crediting of refund. Accordingly, the impugned order on this issue is set aside and grounds raised by the assessee are allowed. - Shri Narendra Kumar Billaiya, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Rushabh Mehta For the Revenue : Smt. Sanyogita Nagpal, CIT-DR ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 16.01.2024, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ learned CIT(A) ], for the assessment year 2020-21. 2. In this appeal, the assessee has raised the following grounds: 1.(a) The Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [for short, Ld. CIT(A)-NFAC] grossly erred in facts and law in not appreciating that the refund received of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment was completed vide order dated 01.09.2022 passed under section 143(3) r.w. section 144B of the Act accepting the returned income. Pursuant to the afore-noted order passed under section 143(3), the Assessing Officer ( AO ) determined and issued a refund of Rs.1803,99,75,450/- on 27.09.2022 which consists of interest under section 244A of Rs.163,99,97,760/- and the principal tax amount of Rs.1639,99,77,693/-. 5. Since the AO computed the interest on the principal amount only upto the date of intimation issued under section 143(1) of the Act, i.e., upto 25.11.2021, the assessee filed the appeal before the learned CIT(A).In its appeal, the assessee also prayed that the assessee be granted the refund of the deficit principal amount of Rs.81,99,98,897/- along with further interest under section 244A from October 2022 onwards till the actual date of granting/crediting the refund. The learned CIT(A), vide impugned order, partly allowed the appeal filed by the assessee and directed the AO to compute the interest on refund upto September 2022, i.e., the date on which the refund was granted. However, the learned CIT(A) dismissed the plea of the assessee regarding the method of calculati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eady granted to the assessee should first be adjusted against the outstanding principal amount of taxes due to be refunded and then the balance amount should be adjusted against the interest component receivable by the assessee. However, as per the assessee, the refund already granted to the assessee should first be adjusted against the interest component and the balance amount, if any, should be adjusted against the principal amount of the taxes due to be refunded to the assessee. 9. In the facts of the present case, a refund amounting to Rs.1803,99,75,450/- was determined and issued to the assessee on 27.09.2022 which consists of interest under section 244A of the Act amounting to Rs.163,99,97,760/- and the principal amount of tax of Rs.1639,99,77,693/-. Since, the interest was computed only till the date of intimation issued under section 143(1) and not till the date of grant of refund in September 2022, the learned CIT(A), vide impugned order, directed the AO to issue the interest on refund due till the date of grant of refund as per the provisions of section 244A of the Act. As per the assessee, it is entitled to interest of Rs.245,99,96,654/- under section 244A till September ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scal legislation in any civilized society should be that the state should treat its citizens (i.e. tax payers in this case) with the same respect, honesty and fairness as it expects from its citizens. It is further noted by us that Hon'ble Delhi High Court has already decided this issue in clear words which has been followed by the Tribunal in assessee's own case in the earlier years. It is further noted by us that assessee is not asking for payment for interest on interest. It is simply requesting for proper method of adjustment of refund and for following the same method which was followed by the department while making collection of taxes. Under these circumstances, we find that judgment of Hon'ble Supreme Court in the case of Gujarat Fluoro Chemicals (supra) is not applicable on the facts of the case before us and thus Ld. CIT (A) committed an error in not following the decisions of the Tribunal of earlier years in assessee's own case as well as judgment of Hon'ble High Court in the case of India Trade Promotion Organisation (supra). 11. We further find that following the aforesaid decision in Union Bank Of India (supra), another Co-ordinate Bench of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis, need not be gone into and no opinion is given herein and they are left open. 8. Accordingly, we direct the ld. AO to compute the correct amount of interest allowable to the assessee as directed by the ld. CIT(A) as on the date of giving effect to the Tribunal's order i.e. 6-9-2013. We further hold that the refund granted on 6-9-2013 be first appropriated or adjusted against such correct amount of interest and consequently, the short fall of refund is to be regarded as shortfall of tax and that shortfall should then be considered for the purpose of computing further interest payable to the assessee u/s.244A of the Act till the date of grant of such refund. Accordingly, the grounds raised by the assessee in this regard are allowed for both the years. 12. We find that while dismissing the Revenue s appeal, similar findings were rendered by the Co-ordinate Bench of the Tribunal in DCIT vs. MSMSatellite (Singapore) Pte Ltd., in ITA No.380/Mum/2021vide its order dated 09.06.2022. 13. Thus, we find that the issue under consideration before us is already settled in favour of the assessee by the aforesaid decisions. Therefore, respectfully following the aforesaid judicial precedent ..... 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