ADIT (IT) 1(1), MUMBAI vs. ASIA TODAY LTD( OLD), MUMBAI

The only ground raised by the revenue in challenging the impugned order dated 30.09.2013 reads as under:-

“1. On the facts and circumstances of the case and in law, whether the ld. DIT(A) was correct in holding that interest under section 244A of the I T Act, 1961 is to be allowed to assessee for period for which the assessee was not able to produce original TDS certificates for substantiating its claim in the return of income filed even when the default was on part of the assessee and therefore, no interest was allowable for the aforesaid period”.

At the outset, both the parties admitted that this issue stands covered by the decision of Hon’ble Jurisdictional High Court in the case of Larsen & Toubro Ltd, reported in [2011] 330 ITR 340. This order has been followed by the Tribunal in assessee’s own case for the assessment year 2004-05 vide order dated 23.12.2015 in ITA No. 4236/Mum/2014.

After considering the aforesaid submissions and on perusal of the impugned order, we find that the only issue relates to granting of interest under section 244A, whether it should be granted from the date of submission of certificate or from the first day of assessment year. The assessee’s case is that AO ought to have granted interest w.e.f. 1.4.2005 as refund due to the assessee which was on account of tax deducted and credited to the Government account by the deductor. The AO however in his order passed under section 154 on 12.04.2014 gave the TDS credit of Rs. 53,97,949/- and allowed interest under section 244A from the date of submission of the TDS certificates. In the return of income filed on 31.10.2005, the assessee had claimed TDS credit of Rs. 1,43,56,403/- and therefore, contended that it is eligible for interest from the 1st April, 2005 itself. The Tribunal in assesee’s own case for the AY 2004-05 following the decision of Hon’ble Bombay High Court in the case of Larsen & Toubro Ltd (supra) decided the issue in the following manner:- 4. We find that the Hon’ble Bombay High Court in the case of Larsen & Toubro Ltd. (supra) has categorically held that the ए�शया टूड़े �ल�मटेड 3 M/s Asia Today Ltd (NEW) TDS due to the assessee even if the TDS certificates have been filed late if the tax was deducted and deposited with the exchequer in time, the interest has to be granted to the assessee from 1st day of assessment year in accordance with Section 244A of the Act and not from the date of filing of TDS certificates with the Revenue. The facts in the instant appeal before us are identical to the facts before Hon’ble Bombay High Court in the case of Larsen and Toubro Limited(supra) and the Revenue has not contradicted the same before us . Respectfully following the same, we reject the contentions of the Revenue and dismiss this appeal by directing the AO to grant interest on refund due to the assessee company on account of excess TDS claim w.e.f. 01.04.2004 and not from the date of submissions of TDS certificates by the assessee company in the light of our above decision stated above strictly in accordance with the decision of Hon’ble Bombay High Court in the case of Larsen and Toubro Limited(supra). We order accordingly.

Thus, following the aforesaid reasoning and the binding judicial precedence of Hon’ble jurisdictional High Court, we decide this issue in favour of the assessee and against the revenue. Accordingly, the sole ground raised by the department stands dismissed.

In the result, both the appeals filed by the revenue stands dismissed. Order pronounced in the open court on 8th March, 2016.