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TMI Blog2025 (2) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... asons attributable to the assessee and justified the action of AO. We do not subscribe to such reasoning since it is a narrow or pedantic view in the facts of the case. In this case, it is to be noticed that the event which triggered capital gain was caused due to the assessee entering into JDA to develop its property on 29.11.2013 with the developer/builder. Since, the JDA/ agreement was not acted upon; and developer backed out and since, the JDA in question was not registered as per law as held by Balbir Singh Maini [2017 (10) TMI 323 - SUPREME COURT] i.e. un-registered JDA is not enforceable in law. And when we juxtapose this case law with the JDA in question, then there is no JDA in the eyes of law and therefore, is un-enforceable in law. Thus, it is noted that the assessee offered capital gain upon mistake of fact or misconception of fact or law, which should be used against the assessee for denying the interest from the date of remittance of Taxes to the exchequer, because State should not be unjustly enriched on an event which didn't exist in the eyes of law. And it is no longer res-integra that CBDT Circular are binding on the Income Tax Authorities as held in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -15 on 31.07.2014 admitting total income of Rs. 3,95,83,180/- and the assessee had paid self-assessment tax of Rs. 87,00,000/- on 10.07.2014 and Rs. 5,41,470/- on 30.07.2014 (totaling to Rs. 92,41,470/-). The return was processed u/s. 143(1) of the Act on 03.06.2015 accepting the returned income wherein the assessee had offered the income (capital gain) since it entered into an unregistered Joint Development Agreement (JDA) with a builder on 29.11.2013 for the development of plot of land owned by it. However, the assessee had offered the capital gains to tax pursuant to the JDA in AY 2014-15 being the relevant year in which the JDA was entered into in the light of Hon'ble Bombay High Court decision in ChaturbhujDwarkadasKapadia [2003] 129 Taxman 497. Meanwhile the Hon'ble Supreme Court in the case of Balbir Singh Maini[2017] 86 taxmann.com 94 (SC) held that if an agreement, like the JDA in the present case, is not registered, it shall have no effect in law for the purposes of section 53A of Transfer of Property Act. In other words, if the agreement/JDA was not registered as per law, in such an event, there is no agreement in the eyes of law which can be enforced u/s. 53A of the Tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .02.2017 filed petition for rectification and claimed refund. Since the delay in claiming the refund is on the part of the assessee, the interest claimed by the assessee u/s. 244A is hereby rejected. 5. Aggrieved by the action of Assessing Officer denying the interest u/s. 244A of the Act, the assessee preferred an appeal before the Ld.CIT(A), who was pleased to partly allow the appeal of the assessee by holding that the assessee is entitled to receive interest for the period from 20.02.2018 to 13.03.2019 (i.e. period between the assessee claimed the refund and the AO granting it). In respect of the period prior to 20.02.2018, according to the Ld.CIT(A) no interest is admissible, since prior to this date, assessee didn't made any claim for the refund. Not satisfied with the part relief granted by the Ld.CIT(A), the assessee has filed the appeal before this Tribunal. 6. We have heard both the parties and perused the records. The sole issue is regarding denial of interest on refund for the period commencing from the date of self-assessment tax till the date on which the assessee filed the rectification application u/s. 154 of the Act on 20.02.2018. The aforesaid facts discussed are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, which the relevant provisions readsas under: Interest on refunds. 244A. (1) Where refund of any amount becomes due to the assessee under this Act, he shall, subject to the provisions of this section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely :-- (a) ……….. (i) ………….. (ii) …………… (aa) where the refund is out of any tax paid under section-140A, such interest shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period, from the date of furnishing of return of income or payment of tax, whichever is later, to the date on which the refund is granted: Provided that no interest under clause (a) or clause (aa) shall be payable, if the amount of refund is less than ten per cent of the tax as determined under sub-section (1) of section-143 or on regular assessment; (b) ………….. (1A) ………. (1B) ………………. (2) If the proceedings resulting in the refund are delayed for reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ittance of Taxes to the exchequer, because State should not be unjustly enriched on an event which didn't exist in the eyes of law. For that we refer to the Circular no. 68 [F.No.245/17/71-A&PAC] dated 17.11.1971 of the CBDT which reads as under: 1. The Board are advised that a mistake arising as a result of a subsequent interpretation of law by the Supreme Court would constitute "a mistake apparent from the records" and rectificatory action under section 35/154 of the 1922 Act/ the 1961 Act would be in order. It has, therefore, been decided that where an assessee moves an application under section 154 pointing out that in the light of a later decision of the Supreme Court pronouncing the correct legal position, a mistake has occurred in any of the completed assessments in his case, the application shall be acted upon, provided the same has been filed within time and is otherwise in order. Where any such applications have already been rejected and the assessee files fresh applications within the statutory time limit, the same may also be treated on par with the applications which may either be pending or received after the issue of this circular. 2. The Board. desire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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