DDIT (IT) 1(1), MUMBAI vs. ASIA TODAY LTD, MUMBAI

This appeal, filed by the Revenue, being 20-12-2013 passed by the learned Commissioner of Income Tax (Appeals)- 10, Mumbai (Hereinafter called “the CIT(A)”), for the assessment year 2004-05.

The only issue arise in this appeal is regarding the grant of interest by the learned assessing officer (Hereinafter called “the AO”) u/s 244A of the Income Tax Act, 1961 on the refund due to the assessee company on account of Tax deducted at source(TDS) being excess of the tax payable by the ITA 4236/M/14 2 assessee company on income computed as per the Income Tax Act,1961 against which the TDS certificates were not filed by the assessee company along with the Return of Income filed by the assessee company with the Revenue but TDS certificate of Rs. 1,95,31,217/- were filed later by the assessee company with the Revenue on 15.12.2006 along with indemnity bond. The A.O. ordered grant of interest u/s 244A of the Act on the TDS of Rs. 3,08,77,690/- from the date of submission of TDS certificates and Indemnity bond by the assessee company on 15-12-2006 before the AO and not from the 1st day of assessment year i.e. 01-04-2004 in the instant appeal as per Section 244A of the Act notwithstanding the fact that the assessee company has duly claimed the afore-stated credit of the TDS in the return of income filed with the Revenue. The order u/s 154 of the Act was passed by the AO on 18-4-2011 which was challenged by the assessee company before the CIT(A) who accepted the contentions and the claim of the assessee company that the assessee company is entitled for interest w.e.f. 1st day of assessment year i.e. 1-4-2004 in the instant case in accordance with Section 244A of the Act on refund computed under the Act on account of TDS claimed by the assessee company being in excess of the tax computed to be payable under the Act , and not from the date of submission of the TDS certificate although there was delay from the side of the assessee company in filing the said TDS certificates before the AO although the same were duly claimed in the return of income filed with the Revenue by the assessee company. The CIT(A) relied upon the decision of Hon’ble Bombay High Court in the case of Larsen & Toubro Ltd. , (2011) 330 ITR 340(Bom.) wherein it was held by Hon’ble Bombay High Court as under:-

Both the parties before us fairly conceded that the matter and the issue in this appeal is squarely covered by the decision of the Hon’ble Bombay High Court in the case of Larsen & Toubro Ltd. (supra) whereby the Hon’ble Court held that the assessee is entitled to interest on TDS due to the assessee even if the TDS certificates have been filed late and interest shall be granted w.e.f. 1st day of assessment year as per Section 244A of the Act.

We find that the Hon’ble Bombay High Court in the case of Larsen & Toubro Ltd. (supra) has categorically held that the assesse is entitled to interest on 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 wef 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.

In the result, the appeal filed by the Revenue is dismissed.