TMI Blog2022 (7) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... h is automatic unless delay is attributable to assessee s fault), the first appellate authority was within his jurisdiction to have entertained the claim of interest on delayed refund u/s 244A which was repeatedly requested by the assessee vide its letters dated 05.04.2018, 01.05.2018, 25.05.2018, 02.08.2018, 08.06.2020, 29.10.2020 and 28.02.2022. In the interest of justice and equity, we restore the issue to the files of the A.O. The A.O. is directed to take a decision in accordance with law and grant interest u/s 244A of the I.T.Act with reference to the delayed refund amount (refund credited to assessee s bank account on 27.07.2020). The A.O. shall afford a reasonable opportunity of being heard to the assessee before a decision is taken in the matter. Appeal filed by the assessee is allowed for statistical purposes. - ITA No.127/Bang/2022 - - - Dated:- 9-6-2022 - Shri George George K, JM And Ms.Padmavathy S, AM Appellant by: Sri.Sunil Jain, CA Respondent by: Sri.Priyadarshi Mishra, Addl.CIT -DR ORDER Per George George K, JM : This appeal at the instance of the assessee is directed against CIT(A) s order dated 23.11.2021. The relevant assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15JB of the Act. The tax payable on income computed u/s. 115JB were worked out at Rs.127,93,98,538/- (including interest U/s 234C of Rs.75,01,446) as against the amount of prepaid taxes of Rs.128,66,76,042/- comprising of TDS of Rs.108,66,76,042/- and advance tax of Rs.20,00,00,000/- and accordingly a tax refund of Rs.72,77,500/- was claimed in the return of income. (refer factual Paper Book Page 1-3). Subsequently, the assessee filed revised return of income on February 8, 2018 declaring therein income of Rs.Nil (after set off of brought forward losses of Rs.570,72,18,138/-) under normal provisions and Book Profit of Rs.595,97,08,234/- as per section 115JB of IT Act. The amount of tax payable on income computed u/s. 115JB were worked out at Rs.127,70,61,709/- (including interest U/s 234C of Rs.51,64,617/-) as against the amount of prepaid taxes of Rs.134,43,75,586/- comprising of TDS of Rs.114,43,75,586/- and advance tax of Rs.20,00,00,000/- and accordingly a tax refund of Rs.6,73,13,880/- was claimed in the return of income. (refer factual Paper Book Page 4-22) 4. The assessment under section 143(3) of the Income Tax Act, 1961 was completed vide order dated 28.03.2018 assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermined in the assessment order dated 28.03.2018, the assessee has filed an appeal before the Commissioner of Income Tax (Appeals)-11, Bangalore. The CIT(A) dismissed the appeal of the assessee. The relevant finding of the CIT(A) reads as follows:- 4.3 The submissions of the appellant and the AO have duly been considered. Here the most important point to be looked into is whether the grounds of appeal are arising out of the order under Section 154 of the Act passed by the AO on 31.07.2020 or not. A perusal of the documents available on record shows that the order which is appealed against in the appeal under consideration was passed by the AO after receiving a no objection of the appellant for reducing the excess refund of Rs 61,67,240/- allowed to it. No other issue was under consideration in this rectification proceedings. During appellate proceedings, vide hearing notice dt. 11.10.2021 the appellant was asked to furnish copy of the rectification application filed before AO for claiming interest under Section 244A of the Act. In response to the same the appellant has filed copy of the rectification application dt. 05.04.2018. It was this rectification application dt.05.04. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr No Particulars Particulars 1 Amount (Rs.) FPB Page No 1 Assessment Year 2016-17 2 Date of filing Original Return of income Nov. 25, 2016 1 3 Income as per normal provision after set off of B/F Losses NIL 2-3 4 Tax payable thereon NIL 3 5 Income as per section 115JB 595,97,08,234 3 6 Tax payable on income as per section 115JB including interest u/s. 234C of Rs.75,01,446,446/- 127,93,98,538 3 7 Prepaid taxes ( comprising of of Rs.1 08,66,76,042/- and advance of Rs.20,00,00,000/- ) 128,66,76,042 3 8 Tax Refund claimed in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44 - 45 26 Date of filing application u/s. 154 for granting Tax refund amount of Rs. 2,30,23,320/- April 05, 2018 44 27 Actual date of grant of Tax refund amount July 27th 2020 50 - 51 28 Amount of Tax refund granted 291,90,560 51 29 Tax Refund amount excess granted by Rs. 61,67,240 30 Excess tax refund amount deposited on July 28th 2020 July 28th 2020 52 31 Date of passing rectification order July 31st 2020 55 - 56 32 Non grant of interest with respect to delayed grant of tax refund amount from March 28 th 2018 to July 27th 2020 For a period of 29 months 23 - 43 55 - 56 33 Interest amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss collected was withheld and r department after a huge delay, assessee entitled to compensation by way of interest such delay 4. Hon'ble Supreme Court in Nima Specific v. Assistant Commissioner of Income-tax, 2019] 104 taxmann.com 56 (SC) 75-76 9-11 13 75 -76 5. Bombay High Court in V. N. Parekh v. S. K. Gupta [2022] 137 taxmann.com 277 77 - 81 7,8 9 79 -80 6. Bombay High Court in CIT vs. Melstar Technologies Ltd [2019] 106 tax (Bombay) 82 -86 7 84 7. Delhi High Court in Agilent Technologies v. Assistant Commissioner of Income Tax, New Delhi [2021] 123 taxmann.com 299 (Delhi) 87 -90 9 to 11 89 8. Gujarat High Court in Ajanta Deputy Commissioner of Income- taxmann.com 148 (Gujarat) 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort grant of interest 33,38,380 33,38,380 2.5 In view of the aforesaid settled legal position in law, the appellant therefore prays your Honour to direct the Assessing Officer to allow interest u/s. 244A of Rs.33,38,3801- for the delay period for which appellant is not at fault in terms of CBDT Instruction No. 7/2013, dated 15-7-2013. In view of the above submissions, the Appellant prays that its appeal be allowed. 7. The learned Departmental Representative was duly heard. 8. We have heard rival submissions and perused the material on record. The admitted facts are that the assessment u/s 143(3) of the I.T.Act was completed vide order dated 28.03.2018 assessing therein total income at Rs.Nil and determining by mistake tax refundable amount of Rs.2,91,90,560 instead of Rs.2,30,23,320. The assessee filed rectification application dated 5th April, 2018 with reference to short computation of tax liability by Rs.61,67,240 (2,91,90,560 2,30,23,320). The assessee in the said rectification application, submitted that the correct refund of Rs.2,30,23,320 along with interest u/s 244A of the I.T.Act till the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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