Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2018 (4) TMI 713

the assessee that it has not received any refund is devoid of any merit as the refund was not issued by issue of cheque to the assessee but was adjusted against the outstanding demand for assessment year 2004 05. Naturally, when the demand is outstanding for A Y 2004 05 there was no question of issuing any refund voucher to the assessee - Whether the interest on income tax refund is chargeable to tax in this year? - Held that:- Income tax refund is chargeable to tax under the head income from other sources on accrued or receipt basis according to the method of accounting employed by the assessee. Admittedly, the assessee is following the mercantile method of accounting. Therefore, the interest on income tax refund if the revenue has .....

X X X X X X X

Full Text of the Document

X X X X X X X

rned income of the appellant towards interest on income tax refund determined and adjusted against the outstanding demand of an earlier year without issuing any order, notice or communication of such determination and adjustment of the appellant. 2. That on the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) has erred in law in not appreciating the correct proposition of law that interest u/s 244 (1A) accrues to the appellant only when it is granted to the assessee along with refund order u/s 240 of the act, and addition of ₹ 1025237/- has been sustained towards interest on income tax refund inspite of non issue of any order granting the refund. 2. The assessee is a company engaged in the b .....

X X X X X X X

Full Text of the Document

X X X X X X X

e order of the Ld. assessing officer preferred an appeal before the Ld. CIT (A). The Ld. CIT (A) on perusal of the records and after obtaining the remand report decided the issue. Undisputedly Assessee Company was granted income tax refund of ₹ 9839550/- which included interest amounting to ₹ 2277965/- which was modified to ₹ 1267657/- vide order dated 15/2/2011 under section 154 of the income tax act. The interest was reduced by a sum of ₹ 213420/- on account of withdrawal of interest under section 244A of the income tax act. Therefore net interest income was determined at ₹ 1054234/- by the Ld. AO that the amount was further adjusted against the demand for assessment year 2004 - 05 on 01/3/2011. Therefore, th .....

X X X X X X X

Full Text of the Document

X X X X X X X

therefore submitted that the claim of the assessee that the assessee has not received it is not correct. It was stated that income tax Department has not claimed that the above refund amount has been paid to the assessee but has been stated that it has been adjusted against the outstanding demand of the assessee for assessment year 2004 - 05. Therefore it is submitted that the Ld. CIT appeal has correctly confirmed the addition of ₹ 1 025237/- because of interest received from income tax Department. 6. We have carefully considered the rival contentions. We have also per used the orders of the lower authorities. The facts emerging out of the orders shows that assessee was granted refund of ₹ 9 839550/- which is comprising of inc .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||