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2018 (2) TMI 350 - AT - Income TaxAllowability of interest u/s 244A - CIT(A) upheld the action of the AO in not allowing interest u/s 244A for the month of June, 2010 even when the approval for refund was issued on 04.06.2010 - Held that:- Where the assessee has paid the taxes and such taxes have been refunded, the assessee is to be paid interest at the prescribed rate for every month or part of a month comprising the period from the date of payment of the tax to the date on which the refund is granted. If such period is a fraction of a month, the same shall be deemed to be a full month and the interest shall be calculated for the entire month accordingly. Therefore, in order to ascertain for how many months the assessee would be entitled to receive interest, the number of months comprised in the period shall have to be determined and the term ‘month’ has to be given the ordinary sense of the term i.e. 30 days of period and not the British calendar month as defined under section 3(35) of the General Clauses Act. The date of payment of tax demand has been stated by the ld AR as 29.02.2008, 4.02.2008 and 3.02.2009. The date on which the refund is granted is the date of the refund voucher/order which is signed and issued on 9.6.2010. The AO shall verify the date of payment of taxes and taking the date of grant of refund as 9.6.2010, determine the number of months for which the interest is payable at the prescribed rate of interest in light of above discussions and the interest so determined is directed to be paid to the assessee.
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