TMI Blog2021 (2) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... nly the balance amount is to be adjusted against tax paid. Accordingly, unpaid amount is the tax component and therefore, the assessee would be entitled for claiming interest on the tax component remaining unpaid. In our considered opinion, the same would not tantamount to interest on interest as alleged by the ld. CIT(A). Similarly, the refund granted to the assessee in July 2016 is to be adjusted against the correct interest payable on the tax amount remaining unpaid and balance towards tax component. 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.06/09/2013. We further hold that the refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar For the Revenue : Shri V.Vinodkumar ORDER PER M. BALAGANESH (A.M): 1. These cross appeals in ITA Nos.473/Mum/2016, 1121/Mum/2016, 474/Mum/2016 1120/Mum/2016 for A.Yrs.2008-09 2007-08 respectively arise out of the order by the ld. Commissioner of Income Tax (Appeals)-13 in appeal Nos.CIT(A)-13/ACIT-7(1)(1)/211/2015-16, CIT(A)-13/ACIT-7(1)(1)/212/2015-16, CIT(A)-12/ACIT-6(3)/28/2010-11 dated 11/12/2015 28/06/2011 respectively (ld. CIT(A) in short) against the order of assessment passed u/s.115 WE(3) r.w.s. 254 of the Income Tax Act, 1961 115 WE(3) of the Act FBT (hereinafter referred to as Act) dated 02/12/2009 20/08/2010 respectively by the ld. Addl. Commissioner of Income Tax, Range-6(3), Mumbai (hereinafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 11/12/2016 allowed interest u/s.244A of the Act on advance tax and self-assessment tax paid by the assessee from first day of assessment year and date of payment of self-assessment tax respectively for both the years till the date of grant of refund. However, we find that the ld. CIT(A) dismissed the assessee s ground for allowing interest on the said amount for the period of delay on the alleged ground that it amounts to compensation by way of interest on interest. 4. Aggrieved by the aforesaid order of the ld. CIT(A), the assessee is in appeal before us seeking correct allowance of interest as per law u/s.244A of the Act and revenue is in appeal challenging the order of the ld. CIT(A) directing the ld. AO to grant interest on s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upto the date of receipt of tribunal order dated 19-6-2013 by Dept.) 6. We find that assessee has raised ground before us stating that refund granted to the assessee is to be first adjusted against the correct amount of interest due on that date and thereafter, the left over portion should be adjusted with the balance tax. We find that in the instant case refund was granted to the assessee vide refund order in October 2013 and it was pleaded by the assessee that the said refund is to be adjusted against the correct amount of interest payable thereof to be computed as per the directions of the ld. CIT(A) and only the balance amount is to be adjusted against tax paid. Accordingly, unpaid amount is the tax component and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered 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. 9. As already stated, the revenue is in appeal only against the direction of the ld. CIT(A) to grant interest on self-assessment tax paid by the assessee u/s.244A(1)(b) of the Act. We find that the revenue had alleged that interest on self-assessment tax is not payable from the date of payment of tax till the date of receipt of refund as the delay is attributable to the assessee because assessee did not claim refund in the return of income. In this regard, we find that the ld. AR had submitted that delay is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read with sections 140A and 156, of the Income-tax Act, 1961 - Refunds -Interest on (Self assessment tax) - Assessment year 1994-95 - Whether tax paid on self assessment would fall under section 244A(1)(b), i.e. a residuary clause, covering refunds of amount not falling under section 244A(1) - Held, yes - Whether, therefore, interest is payable under section 244A(1)(b) on refund on excess amount paid on self assessment tax - Held, yes - Whether interest is payable from date of payment of tax on self assessment to date of refund of amount under section 244A - Held, yes [Paras 7, 8 and 12][In favour of assessee] 11. Similar proposition was laid down by the Hon ble Jurisdictional High Court in assessee s own case in Income Tax Appeal No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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