GLOSTER LIMITED( FORMERLY KNOWN ASKNOWN AS GLOSTER JUTE MILLS LIMITED),KOLKATA vs. A.C.I.T. CIR - 1,KOL, KOLKATA

We have heard rival submissions and gone through facts and circumstances of the case. Briefly stated facts are that the assessee has paid self assessment tax of Rs. 1 cr. on 25.09.2009 for AY 2010-11. The AO while issuing intimation u/s. 143(1) of the Act has not granted interest u/s. 244A of the Act on refund arising out of payment of self assessment tax from the date of payment till the date of adjustment of refund. The CIT(A) also confirmed the action of AO. Before us, ld. Counsel for the assessee stated the fact that the original return of income was processed vide intimation u/s. 143(1) of the Act dated 15.03.2011 wherein a refund of Rs.54,25,711/- was determined but no interest u/s. 244A of the Act was granted on this refund arising out of payment of self assessment tax from the date of payment till the date of adjustment of refund. According to Ld. Counsel for the assessee, this issue is covered by the decision of Hon’ble juri ictional High Court in the case of CIT Vs. Birla Corporation Ltd. ITA No. 526 of 2004 dated 02.02.2016, wherein it is held that the mandate of section 244A(1)(b) of the Act that interest is payable on refund arising from excess payment of self assessment tax from the date of payment of tax to the date of grant of refund actually. Ld. Counsel for the assessee drew our attention to relevant para which reads as under: “Section 244A does not mandate that interest cannot be allowed on self assessment tax paid u/s. 140A. As discussed earlier it cannot be said that interest u/s. 244A can be allowed only in cases where excess payments of tax is made consequent to a notice of demand u/s. 156. The language of the Act is clear and there is no ambiguity in it. Hence the assessee is clearly entitled to claim interest u/s. 244A on refund of excess self assessment tax.” Limited AY 2010-11

On the other hand, Ld. Sr. DR could not controvert the judgment of Hon’ble juri ictional High Court. We find from the facts of the case that there is a refund of Rs.54,25,711/- arising out of self assessment tax but no interest was granted u/s. 244A of the Act on this refund arising out of self assessment tax. We find that this issue is squarely covered by the decision of Hon’ble Calcutta High Court in the case of Birla Corporation Ltd., supra. Hence, the assessee is entitled for interest on this refund. Accordingly, we direct the AO to recompute the interest and allow the same in term of the decision of Hon’ble juri ictional High Court in the case of Birla Corporation Ltd., supra. Appeal of assessee is allowed.

In the result, the appeal of assessee is allowed. Order pronounced in the open court on 02.03.2016. (M. Balaganesh) Judicial Member Dated : 2nd March, 2016 Jd. Sr. P.S Copy of the order forwarded to:

CIT(A), , Kolkata

CIT, , Kolkata

DR, Kolkata Benches, Kolkata /, By order, Asstt.