9911796707
TMI Blog2025 (1) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... insertion of subsection (aa) in section 244A(1) was made by the Finance Act, 2016 to clarify the intent of revenue to grant interest on self- assessment tax. The issue is also covered by the decision of Stock Holding Corporation of India Ltd. [2014 (11) TMI 899 - BOMBAY HIGH COURT]. The contention of the revenue is that the decision was rendered prior to insertion of clause (aa) which was brought in with prospective effect is not acceptable. There have been numerous decisions, both before and after the insertion of clause (aa) on this issue, granting the assessee's claim for interest u/s 244A on excess self-assessment tax. Accordingly, we hold that the assessee is entitled to interest on refund arising out of excess self-assessment tax from the date of payment of self-assessment tax till the date of grant of refund. Interest on delayed grant of refund - claim for additional interest - it is seen that there has been an inordinate delay of more than five years in giving effect to the order of Ld. CIT(A) by the AO - Since a specific provision to grant interest on delayed refunds was introduced by the Finance Act, 2016 by inserting subsection (IA) in section 244 w.e.f. 01.06.2016, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law, the Ld. CIT(A) erred in allowing the interest on excess payment of Self Assessment Tax by relying on the decision of Bombay High Court in case Stock Holding Corporation of India Ltd. ignoring the fact that the said decision was rendered by Hon'ble High Court before the amendment of section 244 by Finance Act, 2016. 3) The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. 4) The appellant craves leave to amend, or alter any grounds or add a new ground, which may be necessary." 4. Brief facts are that the assessee filed its original return on 24.09.2009 declaring income of Rs. 2425,43,25,219/- under normal provisions and taxable book profit u/s 115JB of Rs. 4328,58,33,339/-. The return was processed u/s 143(3) and refund was issued. Subsequently, the assessee filed revised return enhancing its total income under normal provisions to Rs. 2650,73,96,126/-. Thereafter, the assessment was finalized u/s 143(3) vide order dated 12.03.2012 wherein a fresh demand of Rs. 619,42,03,502/- was raised on 12.03.2012 after consideration of the refund already issued to the assessee at the time of processing. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue in appeal as under: "Respectfully, following the order of the Hon'ble ITAT Bench, the present appeal is heard and disposed in the following manner. The first ground of appeal taken by the assessee relates to non-granting of interest u/s. 244A(1)(b) of Rs. 43,64,53,900/- on refund of Rs. 3,96,77,62,722/- arising out ofSelf Assessment Tax. As already discussed in the preceding para, the interest was denied with the specific reason cited by the AO that interest on excess payment of Self Assessment Tax was not payable till the Amendment to this effect was introduced w.e.f 01/06/2016 by insertion of clause (aa) in Section 244A(1). I have perused the order of the AO. I have also perused the order of the Hon'ble High Court at Bombay in writ petition No. 823 of 2000, in the case of the Stock Holding Corporation of India Ltd. Vs. the CIT-III, Mumbai, where in the order dated 17/11/2014 the Ld. High Court clearly stated that interest u/s. 244A(1)(b) is allowable on account of excess payment of tax on Self Assessment from the date of payment of such tax to the date of refund of such excess payment. Respectfully following the said decision along with the various other decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has pointed out that the AO had passed the order giving effect to Ld. CIT(A)'s order on 28.09.2019 i.e. after a delay of 57 months and the refund amounting to Rs. 64.53 crore resulting therefrom has been granted on 28.07.2020. Therefore, there was an inordinate delay of 68 months from December 2014 to July 2020 in granting refund due to the assessee. Accordingly, he argued that the assessee is entitled to additional interest @3% per annum u/s 244A(1)(b) for the entire period. Ld. AR further placed reliance on the following decisions in support of its claim. (i) Stock Holding Corporation of India v/s N.C. Tewari, CIT, Mumbai City- III (2015) 53 taxmann.com 106 (Bom) wherein it was held that tax paid on self-assessment tax would fall under the residuary clause i.e. 244A(1)(b), covering refunds on amounts not falling u/s 244A(1). It was further held that the interest is payable from the date of payment of tax on self-assessment tax till the date of refund of amount u/s 244A. (ii) Nima Specific Family Trust v/s ACIT, Circle (2) (2018) taxmann.com 262 (Guj). In this case it was held that where the assessee's claim for refund of excess of tax calculated was withheld and refunded aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the Finance Act, 2016 to clarify the intent of revenue to grant interest on self- assessment tax. The issue is also covered by the decision of the Hon'ble Jurisdictional High Court in the case of Stock Holding Corporation of India Ltd. (supra). The contention of the revenue is that the decision was rendered prior to insertion of clause (aa) which was brought in with prospective effect is not acceptable. There have been numerous decisions, both before and after the insertion of clause (aa) on this issue, granting the assessee's claim for interest u/s 244A on excess self-assessment tax. Moreover, in assessee's own case in earlier years, such interest has been granted by the Ld. CIT(A)/Ld. AO. Accordingly, we hold that the assessee is entitled to interest on refund arising out of excess self-assessment tax from the date of payment of self-assessment tax till the date of grant of refund. 13. In view of above, revenue's appeal on this issue is dismissed. 14. With regard to the second issue pertaining to interest on delayed grant of refund, it is seen that there has been an inordinate delay of more than five years in giving effect to the order of Ld. CIT(A) by the AO. 15. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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