THE COMMISSIONER OF INCOME TAX-2 MUMBAI vs. L AND T LTD.

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ITXA/3814/2010HC Bombay21 June 2010Bench: HON'BLE SHRI JUSTICE DR. D.Y. CHANDRACHUD, HON'BLE SHRI JUSTICE J.P. DEVADHAR3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tribunal was correct in its direction to grant interest under Section 244A. The Court observed that Section 244A(2) of the Income Tax Act, 1961, which allows for the exclusion of periods of delay attributable to the assessee, was not attracted in this case. Although the TDS certificates were submitted during the assessment proceedings and not with the original return, the Tribunal had noted that the tax was indeed deducted at source at the correct time. Therefore, the Court reasoned that the benefit of TDS had been allowed to the assessee, and interest under Section 244A could not be denied merely because the certificates were not furnished with the return of income, especially when the tax was deducted and deposited in time. The appeal was dismissed as it did not raise any substantial question of law.

What were the facts?

The assessee, M/s. Larsen & Toubra Ltd., filed its return of income for assessment year 2001-01 on November 28, 2000, declaring an income of Rs. 89.75 crores, later revised to Rs. 80.75 crores on March 14, 2002. The Assessing Officer (AO) commenced proceedings on November 18, 2002, and passed an assessment order on March 31, 2003, determining the income at Rs. 97.09 crores under Section 115JA. During the assessment proceedings, TDS certificates amounting to Rs. 1,44,34,030/- were submitted. The AO granted interest under Section 244A on the refund arising from the TDS certificates from April 1, 2001, until the date of refund. The Revenue is in appeal against the Tribunal's order directing the AO to grant interest under Section 244A.

What were the issues?

1. Whether the Tribunal was correct in directing the Assessing Officer to grant interest under Section 244A of the Income Tax Act, 1961, when TDS certificates were submitted during the assessment proceedings and not with the original return? The Revenue's contention is that Section 244A(2) of the Income Tax Act, 1961, mandates the exclusion of periods of delay attributable to the assessee. They argue that the delay in submitting TDS certificates, even if tax was deducted at source on time, should lead to a denial of interest for that period. The Assessee's contention, as understood from the Tribunal's observation, is that since the tax was deducted at source and deposited in time, and the benefit of TDS has been allowed, interest under Section 244A cannot be denied solely on the ground that the certificates were not furnished with the original return. They rely on the fact that Section 244A(2) is not attracted as the proceedings were not delayed due to reasons attributable to the assessee.

Which sections of the Income-tax Act were involved?

Section 244A,Section 244A(2),Section 115JA,Section 143(2),Section 260A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INOME TAX APPEAL (L) NO.3013 OF 2009 The Commissioner of Income Tax-2, 384, Aayakar Bhavan, M.K. Road, Mumbai - 400 020. ..Appellant. V/s. M/s. Larsen & Toubra Ltd., L & T House, N.M. Marg, Ballard Estate, Mumbai-400 001. ..Respondent. Mr. Vimal Gupta for appellant. Mr. J.D. Mistry, Senior Advocate with A.K. Jasani for respondent. CORAM : DR. D.Y.CHANDRACHUD AND J.P.DEVADHAR, JJ.

DATED : 21 JUNE, 2010 ORAL JUDGMENT (PER DR. D.Y.CHANDRACHUD, J.)

1) The Revenue is in appeal under Section 260A of the Income Tax Act, 1961 and the only question is the correctness of the order of the Tribunal directing the Assessing Officer to grant interest under Section 244A. CNR No : HCBM020304522009 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:03:11

2 2) The relevant details are as follows:- The assessee had filed a return of income on 28 November 2000 for assessment year 2001-01 and declared an income of Rs.89.75 crores. On 14 March 2002, the assessee filed a revised return of Rs.80.75 crores. The assessment proceedings commenced on 18 November 2002 with a notice under Section 143(2). The assessment order was passed on 31 March 2003 by which the Assessing Officer determined the income at Rs.97.09 crores under Section 115JA. TDS certificates amounting to Rs. 1,44,34,030/- were submitted during the course of the assessment proceedings. Interest has been allowed to the assessee under Section 244A from 1 April 2001 on the refund under the TDS Certificate, until the date of refund. 3) Section 244A (2) provides that in the event the proceeding resulting in refund has been delayed for reasons attributable to the assessee, the period of delay so attributable shall be excluded from the period for which the interest is payable. In the present case, Section 244 A(2) is clearly not attracted. The proceeding resulting in the refund was not delayed for reasons attributable to the assessee. Though the TDS Certificates were not Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:03:11

3 submitted with the return and were filed during the course of the assessment proceedings, the Tribunal has noted that the tax was in fact deducted at source at the right time. In the circumstances, the Tribunal is correct in holding that since the benefit of TDS has been allowed to the assessee, interest under Section 244A could not be denied only on the ground that the TDS certificates were not furnished with the return of income. Tax was deducted and deposited in the exchequer in time. Section 244A (2) is not attracted. The appeal, therefore, does not raise any substantial question of law and is dismissed. (J.P.DEVADHAR, J.) (DR. D.Y.CHANDRACHUD, J.) Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:03:11 Powered by TCPDF (www.tcpdf.org)

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