9911796707
TMI Blog2016 (9) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... t there was justification on the part of the authorities to have rejected the assessee's request for interest under Section 244A of the Act. Petitioner also sought for a direction to the respondents to pay interest on refund as provided under Section 244A of the Act from 01/04/1997. 2. The short facts involved in the writ petition would disclose that the petitioner, being a Primary Co-operative Society, was assessed to income tax for the assessment year 1997-98. After the mandatory audit under Section 64 of the Kerala Cooperative Societies Act, the returns could be filed only on 01/02/2000. It is stated that the Society had paid advance tax of Rs. 10 lakhs and Tax Deducted at Source (TDS) amounting to Rs. 47,957/-. 3. When the return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner before this Court filing ITA No.33/2011 which was disposed of with an observation that the petitioner was entitled to seek revision before the Commissioner of Income Tax, pursuant to which the petitioner filed a revision which came to be rejected in terms of Ext.P9. 4. The main contention urged by the petitioner is that once the delay in filing the return has been condoned, it becomes a valid return and therefore grant of interest is consequential. Though there is a provision under Section 244A(2) that interest could be denied if the delay is attributable to the assessee, once the return is accepted and refund is ordered, such an approach is clearly illegal. This aspect of the matter had been completely ignored while passing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion which had arisen for consideration was whether on a proper interpretation of the provisions of the Act, an assessee was entitled to be compensated for the delay in paying any amount due, even if such amount comprised of interest. In fact, such a question does not arise for consideration in the present writ petition. However, the Apex Court held at paragraph 30 to 34 as under: "30. In our view, the Act recognises the principle that a person should only be taxed in accordance with law and hence where excess amounts of tax are collected from an assessee or any amounts are wrongfully withheld from an assessee without authority of law, the Revenue must compensate the assessee. 31. At the initial stage of any proceedings under the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady noticed in the paragraph supra, the Madras High Court in Needle Industries (P) Ltd. case has also interpreted the phrase "any amount" in the same manner when considering the provisions of Section 244(1-A) of the Act, which also uses the same phrase in the context of interest payable by the Revenue. In express terms the Court held that the expression referred not only to the tax but also to interest. The Court agreed with a similar view taken by the Kerala High Court in Ambat Echukutty Menon. Both these were cases where the Court was called upon to decide whether further interest was payable by the Revenue on interest which had to be repaid to the assessee. 34. In our opinion, the appellant is entitled to interest under Section 244 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, we are of the view that the assessee was entitled to interest for 57 months on Rs. 45,73,528. The principal amount of Rs. 45,73,528 has been paid on 31-12-1997 but not of interest which, as stated above, partook the character of "amount due" under Section 244-A." 10. Going by the judgments relied upon by either side, I am of the view that the liability to pay interest on refund arises from the date when claim for refund is made with all necessary particulars. As already indicated, Section 244A(2) imposes a restriction on payment of interest when the procedure for refund is on account of the delay attributed to the assessee. In the case on hand, what is to be looked into is whether the delay in refund was due to a cause attributable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
