DCITM CIRCLE-14(1)(2), MUMBAI vs. M/S INVENIRE PETRODYNE LIMITED, MUMBAI

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ITA 1793/MUM/2023Status: DisposedITAT Mumbai21 August 2023AY 2014-20153 pages
AI SummaryDismissed

What did the Tribunal hold?

The Commissioner directed the AO to verify the claim and grant interest as per law, relying on Section 244A(1)(aa) and a jurisdictional High Court decision. The Tribunal found no illegality in this order.

What were the facts?

The Assessing Officer rectified an order but did not grant interest on a refund arising from self-assessment tax paid by the assessee. The assessee challenged this non-grant of interest before the Commissioner.

What were the issues?

Whether interest is payable on refunds arising from self-assessment tax paid by the assessee. The applicability of Section 244A(1)(aa) in such cases.

Which sections of the Income-tax Act were involved?

Section 244A,Section 250,Section 154,Section 143(3),Section 144C(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI “C” BENCH, MUMBAI

Before: Shri Prashant Maharishi & Shri Narender Kumar Choudhry

For Appellant: Shri H.M. Bhatt, Ld. Sr. AR
Hearing: 08.08.2023Pronounced: 21.08.2023

O R D E R Per: N.K. Choudhry, JM This appeal has been preferred by the Assessee against the order dated 20.03.2023 impugned herein passed by the learned Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre, Delhi (NFAC) (in short ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short the Act) for AY 2014-15.

2.

In the instant case, the Assessing Officer (AO), vide order dated 15.05.2018 under section 154 of the Act, though rectified the original order dated 28.02.2018 passed under section 143(3) r.w.s. 144C (3) of the Act, however, did not grant interest on refund arising out of the self-assessment tax paid by the Assessee under section 244A of the Act.

1.

2 M/s. Invenire Petrodyne Ltd. 3. The Assessee being aggrieved, challenged the non-grant of interest before the learned Commissioner, who by considering the bare provisions of section 244A(1)(aa) of the Act and the decision of the Hon'ble Jurisdictional High Court in the case of M/s. Stock Holding Corporation of India Ltd. Vs. N.C. Tewari (WP 823 of 2000 decided on 17.11.2014) wherein it was held as under: -

“13. We find support for our view from the decision rendered by Karnataka High Court in Commissioner of Income Tax v/s Vijaya Bank [2011] 338 ITR page 489 and Delhi High Court in Commissioner of Income Tax v/s/ Sutlej Industries Ltd. [2010] 325 ITR page 331. In both cases in identical circumstances it was held that interest is payable from the date of payment of the tax on self-assessment to the date of refund of the amounts under Section 244A of the Act.”

Ultimately directed the AO to verify the claim of the Assessee and grant interest as per law, if the amount of Rs.32,40,833/- has not been granted earlier.

4.

We have given thoughtful consideration to the peculiar facts and circumstances of the case and observe that the learned Commissioner by granting afore-stated relief and allowing particular ground of appeal in this regard, not only considered the relevant provisions of section 244A(1)(aa) of the Act in its right perspective but also correctly followed the judgement of the Hon'ble High Court in Stock Holding Corporation of India Ltd. (supra), hence in our considered view there is no perversity, impropriety and/or illegality in the impugned order and therefore do not require any interference.

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