9911796707
TMI Blog2009 (6) TMI 913X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the Tribunal was justified in holding that as refund has been issued under Circular No. 285 independently of the Income-tax Act, 1961, the appellant is not entitled for interest on the refunded sum?" 2. The facts which are essential to be stated for the purpose of adjudication of this appeal are that the appellant, M/s. Universal Cables Limited, erroneously deducted the tax out of interest payments made to IDBI regard being had to the provisions contained in section 194A(3)(iii)( b) of the Act. The Tax Deducted at Source (for short 'TDS') was Rs. 7,06,022 on payment of interest to IDBI Bombay. The IDBI objected to the deduction of income-tax as no tax was required to be deducted in respect of payment made to the Financial Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant by way of an administrative measure on equitable ground and hence, cannot be treated as an refund as envisaged under section 237 of the Act. It was contended that as the refund was not made under the provisions of the Act the appeal could not have been entertained by the CIT(A). It was put forth that the appellant was a tax deductor and not an assessee in terms of the provisions of section 2(7) of the Act. The Tribunal upon hearing the parties expressed the view that the present appellant is not an assessee under the Act and but only a tax deductor. In addition to the same the Tribunal also addressed whether the appellant is entitled to any interest on the amount of Rs. 7,06,022. While addressing the said issue the Tribunal came t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of second question. Hence, we restrict our delineation to the second question. 9. As has been pointed out, the facts are not in dispute. The appellant had deducted the tax at source with regard to interest payment to IDBI. The amount has been refunded to it but no interest was paid. As is perceivable from the order passed by the Tribunal that the interest is not payable as it is not a refund under the Act and the appellant is not an assessee for the said purpose. It has also been held by the Tribunal that the appellant is a tax deductor and not an assessee and, therefore, it cannot claim any interest on the grant of refund. Mr. A.P. Shrivastava, learned counsel appearing for the appellant has invited our attention to section 2(7) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 2(7) of the Act. It reads as under : "2(7) 'assessee' means a person in respect of whom any proceeding under this Act has been taken for the assessment of his income or assessment of fringe benefits or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person; (b)every person who is deemed to be an assessee under any provision of this Act; (c)every person who is deemed to be an assessee in default under any provision of this Act." 11. In this context, we may refer with profit to section 201 which reads as follows : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (3) of section 200. (2) Where the tax has not been paid as aforesaid after it is deducted, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (1A) shall be a charge upon all the assets of the person, or the company, as the case may be, referred to in sub-section (1)." 12. We have referred to the aforesaid provision to appreciate the concept of assessee under the Act. 13. Section 237 which deals with refunds is as follows :- "237. Refunds.-If any person satisfies the Assessing Officers that the amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1A) was passed raising the demand and the amount of tax was paid. The order of refund was passed in appellate proceedings under the Act attracting section 240 of the Act. Certain decisions were cited at the Bar to show the meaning of the words "assessee" and "assessment" and different stages of the assessment proceedings, need not be dealt with in view of the clear definition of the word "assessee" under the Act as quoted above.' 15. In Sandvik Asia Ltd.'s case (supra), the Apex Court opined that the assessee was entitled to interest on the amounts of interest paid under section 214 and/or section 244, and that the Department was bound to grant interest which had accrued for those periods. 16. We have referred to aforesaid two decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
