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2019 (12) TMI 203 - AT - Income TaxWithdrawal of refund which was granted on refund u/s 244A - Reduction in interest due to order of CIT(A) - AO was of the view that no interest shall be payable if the amount of refund is less than 10% of the tax as determined under sub section (1) of the section 115WE or sub section (1) of section 143(3) or on regular assessment. - CIT(A) allowed the claim of assessee - Held that:- In the instant case, the alleged refund including interest was neither issued under sub section (1) of 143 nor on regular assessment. Rather, the refund was issued after giving effect to the order of the CIT(A) - Accordingly, clause (b) of sub section (1) of Section 244A is applicable for giving interest on refund due to the assessee company after giving effect to the order of the CIT(A), and thus, proviso to clause (a) of sub section (1) of section 244A is not applicable. As per sub section (3) of the aforesaid section where as a result of an order u/s.250 of the Act, the amount on which the interest was payable under sub section (1) has been increased or reduced, as the case may be, the interest shall be increased or reduced. Accordingly, the AO has jurisdiction for rectifying the interest paid/payable on refund u/s. 154 of the I.T. Act and therefore, whatever the interest u/s.244A of the Act due to the assessee u/s.143(1) of the Act ought to be reduced from the interest on refund granted to the assessee company after determination of income by the appellate authorities. We find that on perusal of material available on record, the excess claim of interest to the extent of ₹ 1,15,74,341/- is required to be called back u/s.234D of the Act only, but not the withdrawal of entire interest of ₹ 3,71,78,138/- granted u/s.244A of the Act. - Decided against the Revenue. Disallowance of the expenditure incurred on reimbursement of LPG Cylinders to the employees - Held that:- as per the National Coal Wage Agreement the employees are entitled to get free issue of coal for domestic use only subject to some quantity limitation. - the assessee company has considered the reimbursement of LPG Cylinder as a perquisite in the hands of the employees and regular income tax is being deducted from such employees in accordance with law. - the AO‟s action is disallowing the above expenditure is not justified.
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