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TMI Blog2025 (2) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... 014. 4. The Tribunal by its order dated 13.04.2016, had remitted the case back to the Assessing Officer, which ultimately culminated in an Assessment Order dated 30.03.2017. 5. The petitioner had filed further appeal before the Commissioner of Income Tax (Appeals)-11 in ITA.No.15/2017-2018. The Commissioner of Income Tax (Appeals)-11 by an order dated 15.11.2018, allowed the petitioner's appeal. 6. Aggrieved by the same, the Department filed a further appeal before the Income Tax Appellate Tribunal (for brevity, 'ITAT') in ITA.No.161/Chny/2019. Meanwhile, after the Commissioner of Income Tax (Appeals)-11 passed the order on 15.11.2018 in ITA.No.15/2017-2018, the Department purportedly refunded amounts to the petitioner on 25.02.2019. Primarily, a sum of Rs. 40,00,000/- was refunded to the petitioner that was paid by the petitioner as tax. Apart from the above, a sum of Rs. 15,47,040/- was refunded towards the aforesaid sum of Rs. 40,00,000/- with interest. Thus, in all, a sum of Rs. 55,47,040/- was refunded back to the petitioner. Meanwhile, the petitioner decided to settle the dispute under the Direct Tax Vivad Se Vishwas Act, 2020 read with the Direct Tax Vivad Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the case at hand. The petitioner has not asked for interest under Section 244A of the Act on the amount of refund claimed in Form 1. In the Explanation to Section 7 of the Direct Tax Vivad se Vishwas Act, the term specifically used is any amount paid "in respect of" tax arrear. The term "tax arrear", is defined to mean aggregate amount of disputed tax and the term "disputed tax" is defined to mean the tax payable by the petitioner as if the appeal is decided against the petitioner. So, the Explanation only refers to the amount paid in respect of tax arrear which is refunded under the Direct Tax Vivad Se Vishwas Act, and not any other refund amount. This implies that the reference in which the restriction of interest under Section 244A of the Act is made is towards any excess payment of tax in respect of the tax arrears which is the disputed tax. Therefore, the Direct Tax Vivad se Vishwas Act, clearly envisages that no interest under Section 244A of the Act is payable on the amount of tax paid towards the disputed tax which is in excess of the amount determined payable as per Section 3 of the Direct Tax Vivad se Vishwas Act. The amount payable towards disputed tax will only arise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,367/- Rs. 40,00,000/- Refundable Rs.40,98,713/- Add: Interest u/s 244A Rs.14,18,331/- Total Amount Refundable Rs.55,47,040/- 16. It is submitted that the amount to be paid by the petitioner would include not only the tax payable on the disputed tax, but, also the interest which was paid under Section 244A of the Income Tax Act, 1961 to the petitioner pursuant to the order of the Commissioner (Appeals) vide order dated 15.11.2018 in ITA.No.15/2017-18 of the Deputy Commissioner of Income Tax in giving effect to the said order. 17. Thus, the short point for consideration in this writ petition is whether for the purpose of determining the "amount payable" by the petitioner under the Direct Tax Vivad Se Vishwas Act, 2020 would include the amount that was refunded back to the petitioner under Section 244A of the Income Tax Act, 1961 in terms of giving effect to the order dated 07.01.2019 bearing reference to PAN:AAACU9457G/Corp.Cir.3(2)/2018- 19 of the Deputy Commissioner, pursuant to the aforesaid order in appeal dated 15.11.2018 in ITA.No.15/2017-18 of the CIT (Appeals). 18. I have considered the arguments advanced by the learned counsel for the petitioner and the learned c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss shall be ignored for the purpose of computation of amount payable. (c) where the tax arrear relates to disputed interest or disputed penalty or disputed fee. twenty-five per cent. Of disputed interest or disputed penalty or disputed fee. thirty per cent. of disputed interest or disputed penalty or disputed fee: 20. These expressions as defined under the Direct Tax Vivad Se Vishwas Act, 2020 are reproduced below:- 2(1)(j) 2(1)(o) Disputed Tax Tax Arrear "disputed tax", in relation to an assessment year or financial year, as the case may be, means the income-tax, including surcharge and cess (hereafter in this clause referred to as the amount of tax) payable by the appellant under the provisions of the Income-tax Act, 1961 (43 of 1961), as computed hereunder:- (A) in a case where any appeal, writ petition or special leave petition is pending before the appellate forum as on the specified date, the amount of tax that is payable by the appellant if such appeal or writ petition or special leave petition was to be decided against him; (B) ... "tax arrear" means,- (i) the aggregate amount of disputed tax, interest chargeable or charged on such disputed tax, and penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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