TMI Blog2023 (3) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... s clearly contrary to the provisions of Section 115O(1A) - we hold that assessee is entitled as per the Act to seek refund in respect of excess payment of dividend distribution tax. Interest u/s.244A - computational issue - HELD THAT:- As we have directed the ld. AO to grant refund of excess payment of dividend distribution tax the same would partake the character of any amount due u/s.244A of the Act, hence assessee would be entitled for interest on said amount also u/s.244A. This being a computational issue, we direct the ld. AO to relook the workings and grant interest u/s. 244A of the Act strictly in accordance with law. Accordingly, the ground No.2 raised by the assessee is allowed for statistical purposes. Interest levie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment passed u/s.154 of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 23/10/2017 by the ld. ACIT-1(3)(2), Mumbai (hereinafter referred to as ld. AO). 2. The first issue to be decided is with regard to refund of excess dividend distribution tax of Rs.81,11,250/-. 3. We have heard rival submissions and perused the materials available on record. The assessee company is engaged in the business of providing international tele-communication services, national long distance services within India, internet related services, INmarsat and other value added services. The original return of income was filed by the assessee on 22/11/2013 declaring total income of Rs.484,62,00,210/- which was later revised on 26/03/2015 declari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons Transformation Services Ltd. had duly remitted the dividend distribution tax of Rs.81,11,250/- (i.e. Rs.5 Crores x 16.2225%) on 02/11/2012. Hence, as per the provisions of 115O(1A) of the Act, the assessee is entitled to pay dividend distribution tax only on Rs.52 Crores (Rs.57 Crores Rs.5 Crores) @ 16.2225% which work out to Rs.8,43,57,000/-, but the assessee has paid dividend distribution tax of Rs.9,24,68,250/- on 09/08/2012 itself. On the date of payment of dividend distribution tax on 09/08/2012 by the assessee company, it is a fact that assessee company had not received the interim dividend of Rs.5 Crores from its wholly owned subsidiary company. At the cost of repetition, the dividend of Rs.5 Crores from wholly owned subsidiary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds (whether interim or otherwise) on or after the 1st day of April, 2003 [but on or before the 31st day of March, 2020], whether out of current or accumulated profits shall be charged to additional income-tax (hereafter referred to as tax on distributed profits) at the rate of fifteen per cent: Provided that in respect of dividend referred to in sub-clause (e) of clause (22) of section 2, this sub-section shall have effect as if for the words fifteen per cent , the words thirty per cent had been substituted. (1A) The amount referred to in sub-section (1) shall be reduced by, (i) the amount of dividend, if any, received by the domestic company during the financial year, if such dividend is received from its subsidiary and, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heard rival submissions and perused the materials available on record. This is purely a computational issue. In view of our decision rendered in ground No.1 hereinabove wherein we have directed the ld. AO to grant refund of excess payment of dividend distribution tax of Rs.81,11,250/-, the same would partake the character of any amount due u/s.244A of the Act, hence assessee would be entitled for interest on said amount also u/s.244A of the Act. 4.2. There have been some section 154 order passed by the ld. AO on 01/07/2019 wherein the interest u/s.244A of the Act has been computed by the ld. AO on Rs.29,36,33,986/- being the refund determined as against the correct figure of Rs.33,60,70,137/- as per the computation sheet enclosed in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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