TMI Blog2004 (10) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... The said modifications were given effect to the order passed on 12-12-1994, as a result of which a further refund of Rs. 19,16,698 was granted by the Assessing Officer. 3. While the matters were resting so, the assessee-company filed some more TDS certificates before the Assessing Officer in March 1997. Those TDS certificates filed by the assessee-company in March 1997 amounted for Rs. 16,32,575. In order to give credit for those TDS certificates, the Assessing Officer passed a rectification order on 1-10-1997 allowing credit for TDS certificate worth Rs. 14,77,162. An interest of Rs. 4,07,734 was also determined thereon. 4. As the above rectification resulted in further refund to the assessee-company, interest was to be allowed thereon. The interest was calculated with effect from 1-4-1997. 5. The assessee-company was aggrieved on the question of the period for which the interest was to be given by the Assessing Officer on the amount of additional refund. The matter went in first appeal. The CIT(A) through his order dated 4-6-1999, directed the Assessing Officer to recalculate the interest as per the provisions of law after going through the relevant facts. In compliance th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., the day when the refund was granted to the appellant company and accordingly; the order of the Assessing Officer is confirmed." 8. It is against the above that the assessee has come in appeal before us. 9. The grounds raised in this appeal by the assessee are as follows:- "On the facts and the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals), Central-11, Aayakar Bhavan, Mumbai (hereinafter referred to as 'the CIT(A)') erred in upholding the Assessing Officer's order for not granting interest under section 244A on the amount of refund arising out of TDS for the period of delay in filing TDS certificates. The appellants submit that in terms of provisions of section 244A(1), interest on refunds arising out of tax paid under section 199 is required to be calculated from first day of April of the assessment year to the date on which refund is granted and, therefore, no period can be excluded for the purpose of calculation of interest." 10. Shri Farrokh Irani, the learned Counsel appearing for the assessee-company argued on the subject at length. The learned Counsel contended that section 244A(1) provides for payment of interest on refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DS certificates before the Assessing Officer. In the present case, the delay was caused for the reasons that the persons who deducted the tax at source in the account of the assessee-company delayed furnishing the certificates against such TDS. The assessee-company had no control over the conduct of those persons who infact deducted the tax at source in the account of the assessee-company. 12. The learned Counsel submitted that if this reasonable interpretation of the provisions contained in sub-section (2) of section 244A is not adhered to, it would result in gross injustice to the assessee. The learned Counsel submitted that in a case where an assessee was able to file all the TDS certificates before the Assessing Officer in time, the assessee would get the refund immediately and if there was a delay, the interest for the period beginning from the first day of April of the assessment year. In a case where an assessee, for reasons beyond its control, filed TDS certificates belatedly, the assessee received the refund belated and also lost interest for the earlier period beginning from the first day of April of the assessment year. In both the cases the tax has been deducted durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... volved in this appeal. 15. Shri Prawin Kumar, the learned D.R. submitted that the facts of the case considered by the Tribunal (SMC-II Bench, Mumbai) in the case of Komaf Financial Services Ltd. are entirely different. In the said case, the TDS certificates were filed by the assessee along with the return of income. Even after filing the TDS certificates, the proper amount of refund was not determined in that case. After protracted correspondences entered into by the assessee, finally, the Assessing Officer sought to redetermine the correct amount of refund. It was at that point of time, the Assessing Officer had pointed out certain defects in the TDS certificates filed by the assessee. The defects were not pointed out by the Assessing Officer before that. It is seen therefore that the responsibility of the delay in determining the correct amount of refund could not be attributed to the assessee. It is in that circumstances, the Tribunal has held that no interest can be denied for the period of delay. 16. As far as the present case is concerned, the learned D.R. submitted that even though the return of income was filed by the assessee on 31-12-1992, the additional set of TDS ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, the final portion of the refund was determined through the proceedings completed under section 154 of the Income-tax Act, 1961. The said proceedings under section 154 was necessitated because of the late filing of the TDS certificates by the assessee-company. If the TDS certificates were filed by the assessee-company in time, along with the return of income, the final instalment of the refund would have determined in the proceedings concluded under section 143(1)(a) itself. Or it would have been determined in the assessment completed under section 143(3). Or it would have been still determined in the proceedings completed by the Assessing Officer to give effect to the orders passed by the CIT(A). The assessee did not file the TDS certificates before the Assessing Officer during any of those proceedings. It is long after the close of the assessment proceedings, that the remaining TDS certificates were filed before the Assessing Officer. 20. It is to be seen that a refund can be determined by the Assessing Officer only on the basis of producing the proof for payment of tax. This is applicable to TDS also. Therefore, a refund germinated from the TDS payments could ..... X X X X Extracts X X X X X X X X Extracts X X X X
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