DCIT CIR 2(2)(1), MUMBAI vs. STATE BANK OF INDORE, MUMBAI

The only effective ground raised by the Revenue, reads as under:–

Brief facts are, the assessee is a public sector Bank. For the assessment year under dispute, the assessee filed its return of income on 29th September 2008, declaring total income of ` 356,52,97,040. Subsequently, the assessee filed revised return of income on 11th November 2009, declaring total income of ` 354,90,95,760. Assessment in case of the assessee was completed under section 143(3) of the Act vide order dated 28th December 2010, determining the total income at ` 512,39,20,130, after making certain additions / disallowances including disallowance under section 14A of the Act. Against the assessment order so passed, the assessee went in appeal before the learned Commissioner (Appeals) and thereafter to the Tribunal. The Tribunal, while disposing off assessee’s appeal in and 479/Ind./2012, dated 31st October 2014, restored the matter back to the Assessing Officer with a direction to re–work out the disallowance to be made under section 14A of the Act. In pursuance to the directions of the Tribunal, the Assessing Officer completed the assessment vide the impugned assessment order determining the total income at ` 355,01,51,090. In view of determination of income made by the Assessing Officer as aforesaid, assessee became entitled to refund of excess tax paid. The Assessing Officer while computing the refund granted interest thereon under section 244A of the Act at ` 16.98 crore as against assessee’s claim of ` 17.69 crore. The 3 State Bank of Indore difference arose on account of the fact that the Assessing Officer adjusted the refund granted first against the tax refund due and leaving aside the interest on which no further interest was granted. The assessee challenged the methodology adopted by the Assessing Officer in computing interest under section 244A of the Act by filing an appeal before the first appellate authority.