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2019 (1) TMI 477 - HC - Income TaxInterest of refund u/s 244A - responsibilty for delay in the refund claim - Held that:- As per sub-section (2) of Section 244A, if the proceedings resulting in refund are delayed for the reasons attributable to the assessee, whether wholly or in part, the period of delay so attributable shall be excluded from the period for which the interest is payable. In the present case, the assessing officer was wholly incorrect in invoking sub-section (2) of Section 244A since we do not find any reasons attributable to the assessee which delayed his refund claim. During the assessment proceedings itself, relying on the note to the return filed, the assessee had argued that certain interest income had not accrued and therefore, not chargeable to the tax. AO did not accept this stand. CIT(A), however, allowed the claim of the assessee which resulted in the refund claim of the assessee. In plain terms, the assessing officer was incorrect in holding that the assessee was responsible for delay in the refund claim. Gujrat High Court in the case of Ajanta Manufacturing Ltd Vs. Deputy CIT [2016 (8) TMI 165 - GUJARAT HIGH COURT] as observed that the act of the assessee revising the return or the fact that the claim was allowed by the Commissioner in Appeal would not be a ground for holding that it was for the reasons attributable to the assessee that the refund was delayed.
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