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2013 (9) TMI 797 - AT - Income TaxDisallowance of interest - Delay in granting refund - Held that:- refund is arising out of TDS and advance tax paid by the assessee and not out of any self assessment tax or any other payment of tax and hence, the assessee is eligible for interest from the 1st day of assessment year till the date of granting refund. The A.O. has allowed interest form 27.03.208 to the date of granting of refund and, therefore, for the period in dispute for which interest should be allowed by the A.O. is from 01.04.2006 to 29.02.2008 i.e. for 23 months on refund of Rs.235.62 lacs. The relevant aspect on which the allowability of interest is denied is this that as to whether there was any delay attributable to the assessee in granting refund. In our considered opinion, since the retraction was made by the assessee immediately after filing the return of income and during the course of assessment proceeding also, it cannot be said that the delay in granting refund is attributable to the assessee in the present case and, therefore, interest is allowable to the assessee for this period also i.e. from 01.04.2006 to 29.02.2008 - Decided in favour of assesee. Assessee is eligible for interest u/s 244A for the entire period for which interest is allowable u/s 244A. There is no period for which the refund was delayed because of reasons attributable to the assessee and hence, no period is required to be excluded for computing interest payable to the assessee u/s 244A. Since, in the present case, the refund is arising partly on account of payment of TDS and advance tax, and the major part of refund is arising out of payment of self assessment tax of Rs.168.30 lacs, interest should be grated to the assessee up to the period 29.02.2008 stating form 01.04.2006 in respect of refund arising out of TDS and advance tax and starting from date of payment of self assessment tax in respect of refund arising out of payment of self assessment tax - Decided in favour of assessee.
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