TMI Blog2014 (6) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... Decided against Assessee. Grant of interest u/s 244 of the Act - Self–assessment tax paid – Held that:- Self–assessment tax is payable on the income shown in any return of income required to be furnished under various provisions of the Act, after taking into account, the amount of tax, if any, paid earlier which can also include advance tax - the self–assessment tax includes any amount of tax which has already been paid under the provisions of the Act - the assessee has paid the tax for the purpose of its taxable income for the AY 2008–09, in the month of July 2008 - due date for filing the return of income was 30th September 2008 - If the tax has been paid prior to the date of filing of return of income, then it has to be construed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned CIT(A) erred on facts and law in upholding the Assessing Officer s order in disallowing Rs. 3,70,027 out of expenses, being one half percentage of average value of investment in relation to exempt income by applying rule 8D(2)(iii), which are investments made out of own and surplus funds. 3. The learned CIT(A) erred in upholding the action of Assessing Officer in not granting interest u/s 244A on the self assessment tax paid, on facts and law. 2. Before us, the learned Counsel for the assessee submitted that the Assessing Officer has disallowed interest expenditure of Rs. 26,08,125, in accordance with rule 8D(2)(ii), which has been reduced by the learned Commissioner (Appeals) at Rs.1,38,036, and administrative expenses on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sal of the finding of the learned Commissioner (Appeals), we find that he has analysed the assessee s interest expenditure vis a vis the utilisation of the loan for the purpose of business. He has also noted the fact that investment to the tune of Rs. 1,36,14,368, has been paid from cash credit bank account and, therefore, interest paid on such cash credit account and working capital has to be disallowed. Based on these findings, he has restricted the disallowance at Rs. 1,38,036, which is not only reasonable but also factually and legally correct and, hence, the findings of the learned Commissioner (Appeals) on this score is upheld. Regarding administrative expenses, the assessee s case has been that it has offered Rs. 60,000, as direct ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had been that it had paid self assessment tax of Rs. 4.50 crores in the month of July 2008, on estimated basis, because it has not paid advance tax during the year. The return of income was filed on 8th January 2009. The Assessing Officer, while granting and issuing refund, had not allowed interest on the self assessment tax for the entire period from the date of its payment till the issue of refund. On behalf of the assessee, reliance was placed on the decision of the Tribunal, Bangalore Bench, in Vijay Bank and also on the decision of the Hon ble Delhi High Court in CIT v/s Sutlej Industries Ltd., [2010] 37 DTR 25 (Del.). The learned Commissioner (Appeals) though held that in principle, the assessee should be entitled to interest on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that, the assessee has not paid the self assessment tax along with the return of income, but prior to the date of filing of the return of income and that to be on the basis of estimation and, therefore, it is not a tax within the ambit of the provisions of section 140A, so as to be entitled for interest under section 244A. In our view, such an interpretation for denying the interest under section 244A, in the present case, is not tenable. Section 140A(1), reads as under: 140A. [(1) Where any tax is payable on the basis of any return required to be furnished under section 115WD or section 115WH or section 139 or section 142 or section 148 or section 153A or, as the case may be, section 158BC, after taking into account,- (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case, the assessee has paid the tax for the purpose of its taxable income for the assessment year 2008 09, in the month of July 2008. The due date for filing the return of income was 30th September 2008. If the tax has been paid prior to the date of filing of return of income, then it has to be construed as amount of tax already paid as contemplated in clause (i) of sub section (1) of section 140A. Thus, the reasoning of the learned Commissioner (Appeals), cannot be upheld. The tax paid by the assessee for a sum of Rs. 4.50 crores, is nothing but tax paid under self assessment tax for the purpose of section 140A and once that is so, the assessee is entitled for interest under section 244A. This is fully supported by the decision of Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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