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2015 (3) TMI 639 - AT - Income TaxInterest u/s 244A on the tax refund - as held by the ITAT that the benefit u/s 72A of the Act was to be granted in the assessment year relevant to the previous year in which the amalgamation takes place - since the scheme of amalgamation was to take effect from 01/04/1994, the benefit of tax credit was to be allowed to the assessee company for the A.Y. 1995-96 and not for 1996-97 as held by the CIT(A) in terms of his order passed u/s 154 - whether delay in proceedings is not attributable to the assessee? - whether assessee is entitled for interest for the period of 01/04/1995 to 23/08/2007? - Held that:- As per provisions of sec. 244A(2) of the Act the issue of exclusion of any period for the purpose of grant of interest u/s 244A(1) of the Act was mandatorily to be decided either by the Chief Commissioner of Income Tax or Commissioner of Income Tax and the authorities below did not work in accordance with the provisions of law and to that extent the order of the AO and the CIT(A) suffers from legal infirmity. Respectfully following the decision of ITAT in the case of Power Finance Corporation Ltd. Vs. ACIT (2008 (12) TMI 432 - ITAT DELHI) and keeping in view the entirety of facts, circumstances and the relevant provisions of the law, we are of the considered opinion that it would serve the interest of justice if the matter is restored back to the file of AO with a direction to refer the issue regarding exclusion of period as prescribed in sub-section (2) of sec. 244A of the Act either to the Chief Commissioner of Income Tax or Commissioner of Income Tax, as the case may be, to get it determine. We may also point out that as per provision of sec. 244A(2) of the Act the decision of Chief Commissioner of Income Tax or Commissioner of Income Tax shall be final on this issue and, therefore, revenue authorities are duty bound to refer the matter to the competent authority for determination of the issue regarding exclusion of period as per provisions of the Act. - Decided in favour of assessee for statistical purposes.
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