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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI V. DURGA RAO & SHRI G. MANJUNATHA
This appeal filed by the assessee is directed against order passed by the learned Commissioner of Income Tax (Appeals)- 19, Chennai, dated 22.08.2019 and pertains to assessment year 2011-12.
The assessee has raised following grounds of appeal:-
“1. The order of the learned Commissioner of Income Tax (Appeals) is against law and facts of the case.
2. The Commissioner of Income Tax (Appeals) erred in not crediting the Refund due of earlier years in par with Advance Tax for Assessment Year 2011-12.
The Appellant is eligible for Tax Refund of Rs.59,59,051 pertaining to block period 01.04.1996 to 31.03.2002 and 01.04.2002 to 21.01.2003
The Learned Assessing Officer erred in ignoring the Appellant’s request to treat the Refund due as Advance tax for Assessment Year 2009-10 onwards.
5. The Learned Commissioner of Income Tax (Appeals) erred in not considering the request made by the appellant to treat the tax refund as advance tax and has credited the refund amount against self- assessment Tax while passing the order for the Assessment Year 2011- 12.
6. The Learned Commissioner of Income Tax (Appeals) erred in computation of Interest u/s 234A and u/s 234B of Rs.13,36,698 and Rs.24,02,816 respectively.”
3. Brief facts of the case are that the appellant has filed its return of income for the assessment year 2011-12 on 01.03.2013 declaring total income of Rs.3,85,01,650/-. The case was taken up for scrutiny and assessment has been completed u/s.143(3) of the Income Tax Act, 1961, on 28.03.2014 determining total income of Rs.3,85,01,650/- and tax payable at Rs.7,15,378/-. The Assessing Officer, while determining tax liability has given credit for Rs.59,59,051/-, which represents refund of tax relating to block period 01.04.1996 to 31.03.2002 and 01.04.2002 to 21.01.2003, against total tax payable, including interest u/s.234A, 234B & 234C of the Act. The assessee had made a representation to the Assessing Officer u/s.154 of the Income Tax Act, 1961, and requested him to compute interest liability u/s.234A, 234B & 234C of the Act, after giving credit for refund of earlier years along with advance tax and TDS. The assessee has filed statement of computation of income and tax liability, as per which there is refund to the assessee of Rs.22,31,898/-, as against total tax payable of Rs.7,15,378/-. The Assessing Officer does not accept application u/s. 154 of the Act filed by the assessee. The assessee carried the matter in appeal before the first appellate authority, but could not succeed. The learned CIT(A), for the reasons stated in his appellate order rejected arguments of the assessee and sustained additions made by the Assessing Officer. Being aggrieved by the learned CIT(A) order, the assessee is in appeal before us.
4. The learned A.R for the assessee submitted that the learned CIT(A) erred in not appreciating fact that the Assessing Officer has determined refund due to the assessee at Rs.59,59,051/-, however, not issued refund nor adjusted against advance tax payable by the assessee for the assessment year 2011-12, as requested vide letter dated 15.06.2010. Therefore, he requested to set aside the issue to the file of the Assessing Officer to reconsider the issue and compute tax liability in accordance with law.
The learned DR, on the other hand, submitted that the Assessing Officer has given refund after computing interest upto date of refund and thus, even if, amount is adjusted against advance tax liability, there would be no difference, because when refund is adjusted against advance tax, then the assessee is entitled for less interest. Therefore, if at all, any grievance for the assessee regarding computation of tax liability, same may be set aside to the file of the Assessing Officer.
We have heard both the parties, perused material available on record and gone through orders of the authorities below. The assessee has filed a photocopy of letter dated 15.06.2010 and claimed that it has made a request to the Assessing Officer to adjust refund of Rs.50,81,199/- pertains to block period against advance tax installments payable for the assessment year 2011-12. Except this, no details are available with regard to date of refund determined by the Assessing Officer at Rs.59,59,051/-. If the Assessing Officer has determined refund due to the assessee, before due date of payment of any installment of advance tax payable for the assessment year 2011-12, and further, if the assessee made request to the Assessing Officer to adjust refund due to the assessee against advance tax payable for the assessment year 2011-12, then, the Assessing Officer ought to have adjusted refund, first against advance tax liability, then compute interest if any, payable by the assessee u/s. 234A, 234B & 234C of the Income Tax Act, 1961. If at all, the Assessing Officer has determined refund due to the assessee, after due date of payment of advance tax liability for the assessment year 2011-12, then, we are of the considered view that there is no error in the adjustment made by the Assessing Officer towards refund due to the assessee against self-assessment tax payable for the assessment year 2011-12. Since, facts are not clear, we are of the considered view that the issue needs to go back to the file of the Assessing Officer for verification of the issue in light of claim of the assessee that it has filed letter dated 15.06.2010 to adjust refund due to the assessee against advance tax liability. Hence, we set aside the issue direct the Assessing Officer to reconsider the issue afresh in accordance with law.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 18th March, 2022