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TMI Blog2024 (8) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... ers and obligations entrusted upon the appellate authority, and therefore, it deserves to be quashed 2. Under the facts and circumstances of the case, the Ld.CIT(A)-2 has grossly erred in law by condoning the actions of the AO who, while computing the interest due u/s. 234B, has not considered interest on Rs. 10.80 Crore from date of deposit till the date of assessment during the passing of appeal effect order dated 25.04.2018. The Ld. CIT(A) has grossly erred in confirming the aforementioned actions of the Ld. AO and therefore this impugned appellate order deserves to be quashed, and the interest due to the appellant be recalculated and duly disbursed. 3. Under the facts and circumstances of the case, the Ld. CIT(A)-2 has grossly erred in law by not giving interest due u/s. 244A on refund amount, as the same was not only miscalculated by the Ld. AO but the erroneous calculations were not shared by him, as well. Therefore, the Appellant humbly requests your good self to kindly allow the said interest u/s. 244A of the Act to the Appellant till date of refund and the AO is to be further directed to increase the refund till the date of actual grant of refund. 4. Under the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,60,00,000 31.03.2015 1,20,00,000 March, 2015 10,80,00,000 12 12 1,29,60,000 Total 1,43,33,259 INCOME TAX COMPUTATION FORM TAX CALCULATION 1. Gross Tax 17,29,34,475 2. Rebate 3. Surcharge 86,46,724 4. Education Cess 54,47,436 5. Tax credit u/s 115JAA/15JD 6. Relief u/s 89(1) 90 / u/s 91 7. Net Tax 18,70,28,635 8. Interest u/s 234A 8a. Delay Period 9. Interest u/s 234B 2,17,15,825 10. Interest u/s 234C 88,69,100 11. Gross Demand 21,76,13,560 TAXES PAYMENT DETAILS 1. TDS/TCS 63,424 2. Advance Tax 60,00,000 3. Self Assessment Tax 20,31,62,001 4. Regular Assessment Tax 22,70,48,201 5. Amount already refunded 0 6. Total Tax paid 22,71,11,625 DIVIDEND DISTRIBUTION TAX DETAILS 1. Additional Income Tax And Interest Payable on Distributed Profits 0 2, Additional Income Tax And Interest Paid 0 FINAL DETAILS 1. Total tax and Interest Payable -9498065 2. Interest u/s 244A 0 3. Interest made u/s 244A recovered 4. Delay period attributable to Assessee 5. Interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 59,70,290 Self-assessment Tax 16.03.2015 50,00,000 Self-Assessment tax 21.03.2015 1,00,00,000 Self-Assessment tax 24.03.2015 2,50,00,000 Self-Assessment tax 25.03.2015 5,60,00000 Self-Assessment tax 31.03.2015 1,20,00000 Self-Assessment tax 15.03.2016 1,11,56,690/- Demand Adjusted by PD account on 15.03.2016 31.01.2017 67,29,510/- Demand Adjusted out of refund proceed for AY 2012 - 2013 vide order 31.01.2017 This issue was not before the Hon'ble ITAT while passing order dated 08-12-2017 in ITA No. 436/Jodh/2017 and 08-02-2018 in ITA No. 535/Jodh/2017. In fact in first round of appeal this issue was not raised by the appellant at any stage. Therefore, the order of the AO is found to be in accordance with directions of the ITAT. The new issue of not allowing interest on self assessment tax deposited before passing of the assessment order raised by the appellant is raised for the first time in the appellate proceedings and the issue is not emanating from the order passed by the AO while giving effect to the order of the Hon'ble ITAT. While passing appeal effect order the AO was justified in following the order of the ITAT and the appellant has not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e first time. The issue raised by the appellant is not found to be acceptable as it was not emanating from the order of the AO against which this appeal is filed. Therefore, as discussed in ground no. 2, this ground is also found to be unacceptable and rejected. This ground of appeal is treated as dismissed." 5. As both the grounds of the assessee was dismissed feeling dissatisfied from the order of the ld. CIT(A) the assessee has preferred the present appeal on the grounds as stated herein above in para 2 challenging the finding of the ld. CIT(A). In support of the grounds raised for interest computed u/s. 234B and interest receivable u/s. 244A of the Act the ld. AR of the assessee has filed a detailed computation sheet herein below:- S. No. Computation of Total Income Income as per appeal effect order dated 25.04.2018 Revised calculation Rs. 1 Total Income (as per appeal effect order dated 25.04.2018 ) 57,64,48,250 57,64,48,250 2 Tax @ 30% 17,29,34,475 17,29,34,475 3 Surcharge @ 5% 86,46,724 86,46,724 4 Total Amount for Educational cess 18,15,81,199 18,15,81,199 5 Educational Cess @ 3% 54,47,435 54,47,435 6 Total Tax Due 18,70,28,635 18,70,28,635 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 244A Annexure-M 209 14. Interest under section 244A of the Act to till 31-3-2023 Annexure-N 210 5.2 The ld. AR of the assessee in addition to the above submissions and chart so produced vehemently argued that the ld. CIT(A) has not considered the remand report of the ld. Assessing Officer which was called for from the ld. Assessing Officer during the pendency of the appeal before the ld. CIT(A). In the remand report the ld. AO categorically confirmed that "no interest has been provided to the assessee on the above deposited amount till the date of assessment. Thus, when the matter was clear and confirmed by the ld. AO in the remand proceeding not considering that fact is bad in law as well as on facts and therefore, the assessee is eligible to get the relief of interest on the above amount of Rs. 10,80,00,000 paid in March 2015 and Rs. 59,70,290/- paid on 28.04.2014 which has not been considered while charging interest u/s. 234B of the Act. The relevant part of the remand report here-in-below:- A. Ground No. 1- The Ld. AO has erred in re-computing the interest charged after giving credit of seized cash from 1" request letter dated 19 March 2014 to till the dated of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, 2015 on the following occasions: 16.03.2015 - Rs. 50,00,000/- 21.03.2015 - Rs. 1,00,00,000/- 24.03.2015 - Rs. 2,5000,000/- 25.03.2015 - Rs. 5,60,00,000/- 31.03.2015 - Rs. 1,20,00,000/- Further, it is submitted that no interest has been provided to the assessee on the above deposited amount till the date of assessment. B. Ground No. 02- The Ld. AO has also erred in rejecting the application of appellant in relation to grant of interest on interest for delayed period considering facts, circumstances and settled legal position on placed on record. Observations: The above ground of appeal of the assessee relates to the grant of interest available u/s 244A w.r.t. the refund of excess interest u/s 234B. The assessee has submitted that though the assessee is eligible for interest u/s 244A, the AO has only granted refund of interest u/s 234B without granting interest u/s 244A on such refund. With respect to the above submission of the assessee, it is submitted that in the case of the assessee, the AO passed Order giving Appeal Effect dated 25.04.2018 pursuant to the order of the Hon'ble ITAT vide order no. 535/Jodh/2017 dated 08.02.2018. In the above order, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax. Explanation 1.-In this section, "assessed tax" means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,- (i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income; (ia) any relief of tax all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of section 245C is increased, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the 1st day of April of such assessment year and ending on the date of such order, on the amount by which the tax on the total income determined on the basis of such order exceeds the tax on the total income disclosed in the application filed under sub-section (1) of section 245C; (c) where, as a result of an order under sub-section (6B) of section 245D, the amount on which interest was payable under clause (b)has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly. (3) Where, as a result of an order of reassessment or re-computation under section 147 or section 153A, the amount on which interest was payable in respect of shortfall in payment of advance tax for any financial year under subsection (1) is increased, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the 1st day of April next following such financial year and ending on the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n law and acceptance of the error in calculation of interest u/s. 234B of the Act the ld. AO is directed to give the credit of the taxes paid by the assessee. As per the computation sheet given in the remand report and the interest based on the chart given by the ld. AR of the assessee we direct the ld. AO to give credit of payment of tax for which credit was not granted while computing the interest as provision of section 234Bof the Act. The ld. AR of the assessee submitted that based on the non disputed facts the assessee is eligible to have reduction in interest u/s. 234B charged by the ld. AO for an amount of Rs. 1,43,33,259/- for a year about or so. Based on the finding so recorded and considering the actual date of payment of taxes the ld. AO is directed to reduce the interest wrongly computed u/s. 234B of the Act and grant the refund arising out of this error in charge of interest u/s. 234B of the Act. In terms of these observations the ground no. 1 & 2 raised by the assessee is allowed. 8. Apropos to the ground no. 3 & 4 of the Act the bench noted that the assessee was denied the benefit of the interest u/s. 244A of the Act only on the ground that the net refund due and ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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