Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2010 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (10) TMI 857 - HC - Income TaxEntitlement of department to collect interest u/s 234D - Held that:- This issue stands decided decision in CIT vs. Kerala Chemicals and Proteins Ltd. (2010 (11) TMI 793 - Kerala High Court) wherein held that the interest is payable only from the date of introduction of the provision, that is, 1st June, 2003. Interest under s. 244A - AO declined interest because the refund is attributable to an additional claim of deduction of provision for bad debt which was allowed by the first appellate authority - Held that:- If the issue of the proceedings, that is, refund order, is delayed for any period attributable to the assessee, then assessee is not entitled to interest for such period. Further, what is clear from sub-cl. (2) is that, if the officer feels that delay in refund for any period is attributable to the assessee, the matter should be referred to the CIT or Chief CIT or any other notified person for deciding the issue and ordering exclusion of such periods for the purpose of granting interest to the assessee u/s 244A(1). In this case, there was no decision by the CIT or Chief CIT on this issue and so much so, we do not think that the AO made out the case of delay in refund for any period attributable to the assessee disentitling for interest. So much so, the officer has no escape from granting interest to the assessee in terms of s. 244A(1)(a). Belated claim of deduction of provision for bad debt u/s 36(1)(vii)(a) - whether will disentitle the assessee from getting interest on refund upto the date of making claim - Held that:- In this case assessment was taken up in the usual course and before completion of assessment, assessee made the claim which was considered and rejected by the AO. However, in appeal the claim was allowed and based on CIT(A)'s order the AO granted refund. No material to hold that the delay in establishing the claim with documents that led to refund is attributable to the assessee and so much so this is not a case covered by sub-s. (2) of the Act. We, therefore, hold that belated claim of deduction made on 10th Jan., 2001 by the assessee will not justify denial of interest otherwise eligible under s. 244A(l)(a) from 1st April, 1999 to 10th Jan., 2001.
|