ACIT-3(4), MUMBAI vs. LUPIN LIMITED, MUMBAI

In the instant case, the Assessee had declared its total income at Rs.9,78,62,40,780/- as per the normal provisions of the Act and Rs.16,00,21,51,047/- as peak profit as per the provisions of section 115JB of the Act, by filing its return of income on 10.03.2022. As the tax on income under normal provisions was more than the tax on deemed income under section 115JB of the Act and therefore the Assessee paid taxes as per the income computed under normal provisions of the Act and consequently claimed the refund of Rs.113,21,64,380/- in the return of income which was processed u/s 143(1) of the Act vide intimation dated 14.11.2022 by the CPC, determining the taxable income at Rs.1152,47,19,270/- and refund of Rs.57,71,10,660/- (inclusive of interest u/s 244A amounting to Rs.5,24,64,600/-).

The Revenue Department being aggrieved with the direction for recalculating the interest u/s 244A of the Act up to the date of actual receipt of refund is in appeal before us. The main contention of the Revenue Department that the Ld. Commissioner though while issuing the aforesaid directions, followed the decision in the case of Union Bank of India vs. ACIT by the Tribunal at Mumbai decided on 11.08.2016, 72 taxmann.com 348 wherein it was held as under: “8. Accordingly, we direct the Id AO to compute the correct amount of interest allowable to the assessee as directed by the id. CIT(A) as on the date of giving effect to the Tribunal’s order 16. 6-9-2013 We further hold that the refund granted on 6-9-2013 be first appropriated or adjusted against such correct amount of interest and consequently, the short fall of refund is to be regarded as shortfall of tax and that shortfall should then be considered for the purpose of computing further interest payable to the assessee u/s.244A of the Act till the date of grant of such refund. Accordingly, the grounds raised by the assessee in this regard are allowed for both the years."

On the contrary, the Ld. A.R. refuted the claim of the Assessee by submitting that the AO itself in the Assessee’s own case in the scrutiny proceedings u/s 143(3) of the Act, while passing the rectification order dated 18.04.2024 u/s 154 r.w.s. 143(3) of the Act has granted the interest u/s 244A of the Act up to the date of receipt of refund i.e. 2nd February 2024 and the Assessee’s appeal against such order u/s 143(3) of the Act is pending before the Ld. Commissioner(Appeals), therefore this appeal has become infructuous, hence the same be dismissed.