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2023 (3) TMI 965 - AT - Income TaxRefund of excess dividend distribution tax - HELD THAT:- As assessee is entitled to pay dividend distribution tax on the dividends declared by it after reducing the dividends received from its subsidiary company during the financial year, provided such subsidiary company had duly remitted the dividend distribution tax on the dividends declared by it. In the instant case, it is not in dispute that the wholly owned subsidiary company had duly remitted the dividend distribution tax on the interim dividend declared by it to the assessee company. Hence, the action of the lower authorities in the instant case is clearly contrary to the provisions of Section 115O(1A) - we hold that assessee is entitled as per the Act to seek refund in respect of excess payment of dividend distribution tax. Interest u/s.244A - computational issue - HELD THAT:- As we have directed the ld. AO to grant refund of excess payment of dividend distribution tax the same would partake the character of “any amount due” u/s.244A of the Act, hence assessee would be entitled for interest on said amount also u/s.244A. This being a computational issue, we direct the ld. AO to relook the workings and grant interest u/s. 244A of the Act strictly in accordance with law. Accordingly, the ground No.2 raised by the assessee is allowed for statistical purposes. Interest levied u/s.234D - HELD THAT:- In response to the return filed by the assessee, the return was processed u/s.143(1) of the Act determining refund due to the assessee including interest u/s 244A of the Act. Later, the said refund was converted into demand in the scrutiny assessment framed u/s.143(3) of the Act wherein interest u/s.234D was charged by the AO on the refund including interest u/s.244A of the Act determined u/s. 143(1) of the Act, instead of calculating interest u/s.234D of the Act only on the refund of tax portion determined u/s.143(1) - This would be correct understanding of the provisions of Section 234D r.w.s. 244A of the Act. We direct the ld. AO to charge interest u/s.234D of the Act in view of the aforesaid provisions and recompute the same in accordance with law. Interest u/s.220(2) - This is purely consequential issue and a computational issue. Hence we direct the ld. AO to recompute the same, if any, chargeable, in accordance with law.
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