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2019 (11) TMI 86 - AT - Income TaxNon-granting of interest to the assessee for the period starting from the date of determination of the refund to date of issue of refund - claim of interest on amounts which were not allowed by the Assessing Officer while issuing the refund to the assessee - HELD THAT:- As relying on M/S. K. LAKSHMANYA AND COMPANY [2017 (11) TMI 589 - SUPREME COURT] and M/S. HEG. LIMITED [2009 (12) TMI 35 - SUPREME COURT] we hold that even on account of interest withheld by the Assessing Officer and not issued on time, for part of the refund, the delay is from June 2006 to July 2015 and for the next refund of ₹ 2.01 crores, the delay is from 15.06.2010 to 20.07.2015, the assessee is entitled to the interest. Accordingly, we hold that the assessee is entitled to claim the interest for withholding the refund due to the assessee on account of interest ultimately allowed to the assessee for a period from the date of short allowed to the date of refund on 20.07.2015. Accordingly, we direct the Assessing Officer to compute the interest in this regard after verifying the calculation of the assessee for the aforesaid interest due to the assessee. Thus, grounds raised by the assessee in this appeal are allowed. Claim of loss on diminution in value of fertilizer bonds - assessee pointed out that the claim made by the assessee was withdrawn by an order passed u/s 154 HELD THAT:- The bonds which were held under the head “current investments assets, within the diminution value of the bonds was in the nature of revenue loss and could be claimed by the assessee”. Since the bonds was held in stock in trade, the same could be valued at market value or cost, whichever was less. Following the said decision of the Hon’ble High Court in assessee’s own case [2015 (12) TMI 1769 - DELHI HIGH COURT] we hold that the assessee is entitled to claim the loss for the diminution in value of fertilizer bonds, since the bonds were held in stock in trade and the same had to be valued either on market rate or cost, whichever was less. Thus, grounds of appeal raised by the assessee in this appeal are allowed.
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