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Income Tax Appellate Tribunal, DELHI BENCH ‘F’ NEW DLEHI
Before: SHRI ANIL CHATURVEDI & SHRI N.K. CHOUDHRY
This appeal has been preferred by the Assessee against the order dated 10.07.2019, impugned herein, passed by the learned Commissioner of Income-tax (Appeals)-38, New Delhi (in short “Ld. Commissioner”), u/s. 250 of the Income-tax Act, 1961 (in short ‘the Act’) for the assessment year 2015-16.
[2]
Brief facts, relevant for adjudication of the instant appeal are that the Assessee by filing its return of income on dated 21.11.2015, declared the income of Rs.41,77,57,980/-. The Assessee computed and admitted the tax liability on the said income to the tune of Rs.13,75,18,996/- and accordingly claimed refund of Rs.1,74,81,000/- out of the total taxes paid to the tune of Rs.15,50,00,000/-(advance tax of Rs.13,50,00,000 + self- assessment tax of Rs.2,00,00,000). The case of the Assessee was selected for scrutiny which resulted into completion of assessment order dated 29.12.2017 u/s. 143(3) of the Act, whereby income of the Assessee was determined at Rs.41,92,20,905/- and consequently the Assessing Officer made an addition of Rs.14,62,925/- u/s. 14A of the Act.
2.1 Aggrieved against the order passed by the Assessing Officer, the Assessee preferred first appeal before the ld. Commissioner, who vide order dated 23.05.2018 deleted the addition of Rs.14,62,925/-.
2.2 Subsequently, CPC vide order dated 19.01.2018, passed u/s. 154/143(3) of the Act, allowed the refund of Rs.1,69,83,753/- to the Assessee, however, without granting any interest u/s. 244A of the Act.
2.3 The Assessee vide application dated 03.04.2018 requested the CPC for allowing the interest u/s. 244A of the Act, but the yielded no result. The Assessee subsequently on dated 07.01.2019 also lodged its grievance with ITBA wherein it was replied by the ITBA that section 244 is not applicable on self-assessment tax.
2.4 The Assesseefinally being aggrieved, also preferred an rectification application dated 07.02.2018 u/s 154 of the Act, which was also declined by the AO on the ground that section 244A(aa) is applicable from 01.06.2016 and the provisions for interest u/s. 244A on refund out of tax paid u/s. 140A were applicable from 01.06.2016, but in the case of Assessee refund became due on 21.11.2015, i.e., date of filing of return.
[3] In view of the above, interest u/s. 244A cannot be allowed to the Assessee on refund from self-assessment tax. In view of the above, the application of the Assessee is rejected.
The Assessee being aggrieved with the action of the Assessing Officer in denial of the interest u/s. 244A of the Act, preferred first appeal before the ld. Commissioner, who vide impugned order sustained the rejection of application u/s. 154 by the Assessing Officer while relying upon the judgment of Hon’ble Delhi High Court in the case of CIT vs. Engineers India Ltd. (2015) 373 ITR 0377 (Delhi).
The Assessee, being aggrieved, preferred the instant appeal which is under consideration before us.
Heard the parties and perused the orders passed by the authorities below and material available on record. The issue involved in the instant appeal relates to not allowing the interest u/s. 244A of the Act to the Assessee on the refund arising out of self-assessment tax.
5.1 We observe that the Assessing Officer, while denying the claim of interest to the Assessee, relied upon the amended provisions of section 244A applicable from 01.06.2016, wherein sub clauses (a) and (aa) have been inserted in section 244A of the Act. Admittedly, the said provisions were inserted vide Finance Act, 2016 as applicable from 01.06.2016 onwards, and therefore are not applicable to the case of the Assessee as the case of the Assessee pertains to the period prior to the amendment and therefore, the embargo placed in the substituted provisions u/s. 244A of the Act is not applicable to the case of the Assessee.
5.2 It is a fact that the judgment passed by the Hon’ble Delhi High court in the case of CIT vs. Engineers India Ltd. (supra) on the basis of which, the ld. Commissioner sustained the action of the Assessing Officer in not allowing the interest on the refund out of tax paid u/s. 244A of the [4] Act, has already been set aside by the Hon’ble Apex Court in the case of Engineers India Ltd. vs. CIT, 2017 (157) DTR 0235(SC).
5.3 The Hon’ble Delhi High Court in the case of CIT vs. Sutlej Industries Ltd. (2010) 325 ITR 331 (Del) also dealt with the identical issue as involved in the instant case and held that the Assessee is entitled to get interest u/s. 244A of the Act on the amount of refund on self-assessment tax paid u/s. 244A of the Act. The Hon’ble High Court further held that the computation of interest on self-assessment tax has to be in terms of section 244A(1)(b) of the act and from the date of payment of such amount upto date on which refund is actually granted.
5.4 Even Hon’ble Apex Court in the case of Union of India vs. Tata Chemicals Ltd. (2014) 6 SCC 335 also considered clause (b) of section 244 of the Act and held that the resident/deductor is entitled tonot only the tax deposited u/s. 195(2) of the Act, but has to be refunded with interest from the date of payment of such tax.
5.5 Hon’ble Coordinate Bench also in the case of Maruti Suzuki Ltd. vs. CIT and other connected appeals { etc. decided on 31.08.2020} elaborately discussed the provisions of section 244A of the Act as well as various judgments passed by Hon’ble Apex Court and the High Courts and the Tribunal in the identical cases and ultimately held that where the refund of any amount becomes due before 01.06.2016 in the case of arising out of self-assessment tax, interest would be calculated on the entire self-assessment tax refunded from the date of payment of S.A. Tax.
5.6 On the aforesaid analyzations, we are of the considered view that the Assessee is entitled to get interest as claimed, hence ordered accordingly.
[5]
In the result, the appeal filed by the Assessee stands allowed.
Order pronounced in the open court on 29/07/2022.