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TMI Blog2025 (1) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The learned Commissioner (Appeals) ought to have appreciated that the appeal was with respect to the interest under section 244A(1)(b) not granted by the Deputy Commissioner on the refund arising out of self-assessment tax paid by the appellant." 3. The revenue has raised following grounds of appeal: "1) Whether on the facts and circumstances of the case and in law, the Ld. CII(A) erred in allowing the interest on excess payment of Self Assessment Tax without considering the fact that the provisions of section 244(1)(au) was introduced from 01.06.2016 by Finance Act, 2016 and therefore assessee's case is not covered under the said clause as assessee's case pertains to A.Y. 2009-10. 2) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in allowing the interest on excess payment of Self Assessment Tax by relying on the decision of Bombay High Court in case Stock Holding Corporation of India Ltd. ignoring the fact that the said decision was rendered by Hon'ble High Court before the amendment of section 244 by Finance Act, 2016. 3) The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm No. 3 on 25.03.2021 wherein a demand of Rs. 112,49,12,651/- was notified for settlement of both the appeals. The assessee made the payment of demanded tax on 30.09.2021 and form No. 5 was issued on 02.03.2022. 8. Meanwhile, the appeal regarding non-grant of interest on self-assessment tax while giving effect to CIT(A)'s order dated 13.08.2014 was wrongly dismissed by the Ld. CIT(A) under a misconception that the dispute had been resolved after availing of "Vivad se Vishwas Scheme" by the assessee. The assessee filed an appeal before the ITAT against this dismissal. The matter was remanded back to the file of the Ld. CIT(A) by the order of the co-ordinate bench for denovo adjudication of the issue. The ld. CIT(A), vide order dated 21.03.2024, decided the issue in appeal as under: "Respectfully, following the order of the Hon'ble ITAT Bench, the present appeal is heard and disposed in the following manner. The first ground of appeal taken by the assessee relates to non-granting of interest u/s. 244A(1)(b) of Rs. 43,64,53,900/- on refund of Rs. 3,96,77,62,722/- arising out ofSelf Assessment Tax. As already discussed in the preceding para, the interest was denied with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h was issued on 28/08/2019. Therefore, in this case the assessee's claim for additional interest u/s. 244A(1A) is denied." Aggrieved with the said order, both the revenue and the assessee have filed appeal before us. 9. Ld. AR has submitted a chart regarding timeline of the events beginning with the filing of the return till date showing the chronology and especially highlighting the delay in giving effect to Ld. CIT(A)'s order. He has further placed reliance on the order of the Ld. CIT(A)s in its own case in earlier years wherein interest u/s 244A(1)(b) has been allowed on refund arising out of self- assessment tax. Copies of the orders for AYs 2009-10 and earlier years have also been filed. With regard to the additional interest u/s 244A(1), Ld. AR has pointed out that the AO had passed the order giving effect to Ld. CIT(A)'s order on 28.09.2019 i.e. after a delay of 57 months and the refund amounting to Rs. 64.53 crore resulting therefrom has been granted on 28.07.2020. Therefore, there was an inordinate delay of 68 months from December 2014 to July 2020 in granting refund due to the assessee. Accordingly, he argued that the assessee is entitled to additional interest @3% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .... (b) in any other case, such interest shall be calculated at the rate of [one-half per cent] for every month¹ or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted." 12. Thus, the assessee's claim for interest on self-assessment tax is clearly covered under the provisions of clause (b) of section 244A(1). Even though the self-assessment tax was not specifically mentioned therein, it has been held by various High Courts as well as co-ordinate benches of ITAT that the assessee is entitled to interest on refund arising out of excess amount paid as self- assessment tax. The insertion of subsection (aa) in section 244A(1) was made by the Finance Act, 2016 to clarify the intent of revenue to grant interest on self- assessment tax. The issue is also covered by the decision of the Hon'ble Jurisdictional High Court in the case of Stock Holding Corporation of India Ltd. (supra). The contention of the revenue is that the decision was rendered prior to insertion of clause (aa) which was brought in with prospective effect is not acceptable. There have been numero ..... X X X X Extracts X X X X X X X X Extracts X X X X
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