TMI Blog2019 (1) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the assessee had argued that certain interest income had not accrued and therefore, not chargeable to the tax. AO did not accept this stand. CIT(A), however, allowed the claim of the assessee which resulted in the refund claim of the assessee. In plain terms, the assessing officer was incorrect in holding that the assessee was responsible for delay in the refund claim. Gujrat High Court in the case of Ajanta Manufacturing Ltd Vs. Deputy CIT [2016 (8) TMI 165 - GUJARAT HIGH COURT] as observed that the act of the assessee revising the return or the fact that the claim was allowed by the Commissioner in Appeal would not be a ground for holding that it was for the reasons attributable to the assessee that the refund was delayed. - INCOME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT(A) became final. The question of refunding the excess tax with interest came up for consideration before the assessing officer. He granted refund with interest only from the date of the order of the CIT(A). The assessee disputed this position. The issue eventually reached the Tribunal. The Tribunal referred to the provisions of sub-sections 1 and 2 of Section 244A of the Income Tax Act, 1961 ( Act for short) and held that the stand of the assessing officer was incorrect. Thereupon, the revenue has filed this appeal. 3. Section 244A of the Act pertains to interest on refunds. Sub-section 1 of Section 244A recognizes grant of interest to an assessee who is found entitled to refund under certain circumstances. Sub-section 2 of Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding that the assessee was responsible for delay in the refund claim. 5. Learned counsel for the assessee correctly pointed out certain decisions of this Court and other Courts elaborating this aspect of the matter, e.g. in a Division Bench judgment of Gujrat High Court in the case of Ajanta Manufacturing Ltd Vs. Deputy CIT(Guj) [2017] 391 ITR 33 (Guj) , it was observed that the act of the assessee revising the return or the fact that the claim was allowed by the Commissioner in Appeal would not be a ground for holding that it was for the reasons attributable to the assessee that the refund was delayed. Relying upon the decision of the Kerala High Court in case of CIT Vs. South Indian Bank Ltd (Ker) [2012] 340 ITR 574 (Ker), fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to interest for the period of delay in issuing the proceedings leading to the refund that is attributable to the assessee. In other words, if the issue of the refund order is delayed for any period attributable to the assessee, then the assessee shall not be entitled to interest for such period. This is of course an exception to clauses (a) and (b) of section 244A(1) of the Act. In other words, if the issue of the proceedings, that is, refund order, is delayed for any period attributable to the assessee, then the assessee is not entitled to interest of such period. Further, what is clear from subsection (2) is that, if the officer feels that delay in refund for any period is attributable to the assessee, the matter should be referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esults to an assessee, while computing the interest payable thereon, the delay which is attributable to the assessee, in obtaining the refund would be excluded. The Act itself does not provide for rejecting the claim for interest on account of a mistake committed by an assessee. If such a proposition is to be accepted then all excess amounts of tax paid by the assessee on account of a mistake would stand rejected rendering Section 244A of the Act otiose. Section 244A of the Act provides for interest on refunds in respect of any amount which has been paid in excess to that otherwise payable under the law. In most cases the excess amount paid as tax would originate on account of some mistake either on fact or of law on the part of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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