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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE – VIRTUAL COURT
Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI
आदेश / ORDER
PER R.S.SYAL, VP : This appeal by the Revenue assails the correctness of the order dated 28-02-2018 passed by the CIT(A) in relation to the assessment year 2007-08. 2. The only issue raised in this appeal is against the granting of interest u/s 244A of the Income-tax Act, 1961 (hereinafter also called `the Act’) on self assessment tax paid by the assessee. Succinctly, the facts of the case are that the Assessing Officer (AO), in computing interest payable to the assessee on refund u/s.244A of the Act, did not include the
2 ITA No. 964/PUN/2018 M/s. Emcure Pharmaceuticals Ltd..,
amount of self-assessment tax paid by the assessee. The ld.
CIT(A) accepted the assessee’s contention and directed to
allow interest, inter alia, on the amount of self-assessment tax.
Aggrieved thereby, the Revenue has come up in appeal before
the Tribunal.
We have heard both the sides in Virtual Court and
perused the relevant material on record. Section 244A of the
Act provides for interest on refunds. Clause (a) of sub-section
(1) of section 244A talks of allowing interest on refund arising
out of any tax collected at source u/s.206C or Advance tax or
Tax deducted at source. This clause does not specifically
mention interest on self-assessment tax. Clause (b) of section
244A(1) directs the granting of interest `in any other case’ at
the specified rate and the period. The expression “in any other
case” used in clause (b), ergo, encompasses the granting of
interest on refund in all cases except those specifically covered
in sub-clause (a), viz., tax collected at source u/s.206C or
advance tax or TDS. It, therefore, becomes palpable that if
refund arises because of self-assessment tax, which falls in the
realm of the expression `any other case’, the same gets
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covered within the purview of clause (b) of section 244A(1),
thereby entitling the assessee to interest thereon.
The ld. DR accentuated on the insertion of clauses (a) and
(aa) to section 244A w.e.f. 01-06-2016 by the Finance Act,
2016, substituting the hitherto clause (a) of section 244A(1).
In that view of the matter, it was urged that no interest on self
assessment tax could be allowed for the period anterior to such
insertion, which is the position under consideration.
We are unable to countenance the contention put forth on
behalf of the Revenue. Clause (b) of section 244A(1)
containing the expression “in any other case”, amply
deciphers the entitlement to interest on refund due to any
payment of tax by the assessee except those specifically
covered under clause (a). Payment of self assessment tax is
one of the modes of payment of tax by the assessee. The 2016
amendment has the effect of expressly covering interest on
refund due to payment of self assessment tax under clause
(aa), which was impliedly included earlier in clause (b). Even
otherwise, there can be no unjust enrichment by the exchequer.
If an assessee has been deprived of the amount lawfully due to
him, the refund has to go with interest only unless there is an
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express statutory embargo. No such prohibition has been
brought to our notice by the ld. DR. We, therefore, accord our
imprimatur to the view canvassed by the ld. CIT(A) on this
score.
In the result, the appeal is dismissed.
Order pronounced in the Open Court on 20th January,
2022.
Sd/- Sd/- (S.S.VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 20th January, 2022 Satish
आदेश क� ��त�ल�प अ�े�षत/Copy of the Order is forwarded to: 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. The CIT(A)-12, Pune 4. The Pr.CIT (Central), Pune िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “A” / DR ‘A’, 5. ITAT, Pune गाड� फाईल / Guard file 6.
आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
5 ITA No. 964/PUN/2018 M/s. Emcure Pharmaceuticals Ltd..,
Date 1. Draft dictated on 19-01-2022 Sr.PS 2. Draft placed before author 19-01-2022 Sr.PS 3. Draft proposed & placed before the JM second member 4. Draft discussed/approved by Second JM Member. 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *