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2019 (2) TMI 623 - AT - Income TaxDelay in remittance of TDS - AO calculated the interest as per the British calendar month and calculated interest for three months - method and manner of calculation of interest - Held that:- AO had taken the month to be the British calendar month as defined in Section 3(35) of the General Clauses Act and it is only on that premise, he calculated one day in March and two days in May as two full months and calculated interest for three months including the month of April also. In CIT vs. Arvind Mills Ltd. [2011 (9) TMI 244 - GUJARAT HIGH COURT] in the context of interest on refunds u/s 244A as held that the term ‘month’ must be given the ordinary sense of the term i.e. 30 days of period and not the British calendar month as defined u/s 3(35) of the General Clauses Act and such a definition under the General Clauses Act cannot be adopted for the purposes of Section 244A of the Act inasmuch as such importation of definition would lead to anomalous situation. Section 244A(1) is analogous to provisions of Section 201(1A)(ii) read with Rule 119A of the Act and a month must be given ordinary meaning of the term by taking period of 30 days and not British calendar month as defined u/s 3(35) of the General Clauses Act. See M/S. NAVAYUGA QUAZIGUND EXPRESSWAY (P) LIMITED, VERSUS DY. COMMISSIONER OF INCOME-TAX CIRCLE 15 (1) HYDERABAD [2015 (3) TMI 1083 - ITAT HYDERABAD] We are unable to endorse the view of the AO and accept the calculation of month reckoned by him. However, in view of the fact that the assessee did not furnish the requisite information as observed by the learned CIT(A) in para 2.3 of his order, we deem it just and necessary, while setting aside the impugned order, to remand the matter to the file of the learned CIT(A) to enable the assessee to submit the actual calculation showing the discrepancies in the calculation of interest by the AO and the assessee respectively. - Decided in favour of assessee for statistical purposes.
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