TMI Blog2016 (4) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... ed against assessee - I.T.A. Nos.1320, 1321, 1322, 1323, 1324, 1325 & 1326/Mds/2015 - - - Dated:- 17-3-2016 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER For The Appellant by : Shri. C. Naresh, C.A. For The Respondent : Shri. Shaji P. Jacob, IRS, Addl. CIT ORDER PER G. PAVAN KUMAR, JUDICIAL MEMBER: The assessee filed seven appeals against different orders of Commissioner of Income-Tax, Chennai dated 25.03.2015 for the above assessment years passed u/s.263 of the Income Tax Act, 1961 (herein after referred to as the Act ). Since the issue in these appeals are common in nature, hence these appeals are combined, heard together, and disposed of by a common order for the sake of convenience. 2. The assessee has raised the following grounds:- 1.1. The learned Commissioner of Income Tax erred in invoking revisionary proceeding under section 263 setting aside the order of AO granting refund and interest on TDS refunded with a direction to verify documents and exclude the period of delay attributable to assessee. 1.2. The learned CIT failed to appreciate that the order of AO was not erroneous and prejudicial to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- Subsequently, the Commissioner of Income Tax issued show cause notice for initiating proceedings u/s.263 of the Act dated 28.11.2014 as the assessee has filed return of income on 31.10.2001 and return was processed u/s.143(1) of the Act on 29.11.2002. The ld. Assessing Officer granted TDS credit to the extent of C22,15,22,032/- as against total credit of C36,37,57,680/- in return of income and no credit was allowed for defective TDS certificates to the extent of C14,22,35,648/- and Assessing Officer completed assessment u/s.143(3) dated 31.03.2004. Subsequent to the assessment, assessee bank filed rectification petition, which the Assessing Officer considered and passed order u/s.154 of the Act on 19.04.2013 granted TDS claim based on Indemnity bond filed by the assessee alongwith interest u/s.244A of the Act. The interest u/s.244A of the Act was granted ignoring the fact of delay in filing of TDS certificate attributable to the assessee and there is no proper verification by the Assessing Officer and proceedings are erroneous and prejudicial to the interest of the Revenue. 4. On the date of hearing, the assessee filed explanation by letter dated 13. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence regarding rectification of defects by the assessee. The Commissioner of Income Tax (Appeals) on the order of original assessment has directed the Assessing Officer to carry out verification of TDS claim. Subsequently, the assessee filed a letter dated 15.03.2013 requesting the Assessing Officer to allow TDS claim and submitted indemnity bond. The ld. Assessing Officer on the basis of indemnity bond passed rectification order u/sec. 154 of the Act dated 19.04.2013 allowing TDS credit and granting interest u/s.244A of the Act on the refund to the assessee from April, 2001 to March, 2013. The Assessing Officer while granting refund has not done proper verification or applied his mind whether the delay in proceedings resulting in refund wholly and partly attributable to the assessee or whether any period to be excluded under provisions u/s.244A(2) of the Act. Prime facie, the Assessing Officer has not considered the time taken by the assessee to file belatedly TDS certificates. Further, the ld. Commissioner of Income Tax on perusal of the submissions and explanations of the assessee bank was not satisfied with the issue of granting interest on refund ignoring the delay attributa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Act. Aggrieved by the order of the Commissioner of Income Tax, the assessee filed an appeal before the Tribunal. 5. Before us, the ld. Authorised Representative reiterated his submissions alongwith evidence and material filed before the Assessing Officer and Commissioner of Income Tax in Revision proceedings and argued the grounds that Direction of Commissioner of Income Tax under revision proceedings in set aside off the rectification order of Assessing Officer granting refund and interest on TDS to exclude the period of delay attributable to the assessee is without any basis. The TDS was refunded based on the indemnity bond and TDS has been deducted, paid by Government institutions or other public sector undertaking, further the time taken to cure defects cannot be construed as delay attributable to the deductee as TDS was deposited with the Government Treasury which is not disputed but due to mistake in TDS certificates the action of the Assessing Officer cannot be prejudicial to the interest of the Revenue and relied on the findings of the Assessing Officer. 6. Contra, the ld. Departmental Representative vehemently opposed to the grounds and the order is erroneou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificates. The Commissioner of Income Tax has dealt in his revision order but Assessing Officer seems to have overlooked the such calculations. We rely on the decision of CIT vs. Varanasi Khanta Rao (2015) 56 Taxmann.com 175 (AP) were the lordship held the Commissioner of Income Tax has got the power to point out errors which effect on Revenue and similar issue of Sec.244A of the Act dealt by the High Court of Telangana and Andhra Pradesh in the case of L. Madanlal Steels Ltd. vs. CCIT (2015) 56 taxmnn.com 13 (AP) where the assessee claimed for interest on delay of refund based on the TDS certificate obtained subsequently, and filed an affidavit and indemnity bond and it was held that where there is no delay on part of the Department in making refund after giving indemnity bond by the assessee no interest was allowable. 8. We considered the factual circumstances and the provisions of TDS and grant of interest u/s.244A of the Act, the assessee has legitimate right to claim interest on refund provided the assessee submits correct TDS certificate within the time and eligible for interest on refund. It is the duty of the assessee in case of manual certificate in form 16A to verify ..... X X X X Extracts X X X X X X X X Extracts X X X X
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