ACIT CIRCLE-11(1), NEW DELHI vs. HCL INFOTECH LTD, NEW DELHI

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ITA 7267/DEL/2019Status: DisposedITAT Delhi15 September 2023AY 2014-15Bench: SHRI N.K. BILLAIYA (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)4 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) correctly allowed interest under Section 244A as the delay in refund was not attributable to the assessee's fault. The assessee had taken prompt steps to rectify the technical error.

What were the facts?

The assessee filed a revised return of income with a higher TDS claim due to a technical error. The assessee promptly informed the CPC and the AO about the discrepancy. The AO disallowed a portion of TDS but allowed credit for prepaid taxes.

What were the issues?

Whether the assessee is entitled to interest under Section 244A when the refund delay was due to a technical error and not the assessee's fault.

Which sections of the Income-tax Act were involved?

Section 244A,Section 154,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’: NEW DELHI

Before: SHRI N.K. BILLAIYA & SHRI ANUBHAV SHARMA

For Appellant: Shri Rohit Jain, Adv and Shri Hardeep Singh Chawla, Adv
For Respondent: Shri Vivek Kumar Upadhyay Sr. DR, Shri Rohit Jain, Adv and Shri Hardeep Singh Chawla, Adv
Hearing: 13.09.2023Pronounced: 15.09.2023

This appeal by the Revenue is preferred against the order of the CIT(A)-4, New Delhi, dated 06.06.2019 pertaining to AY 2014-15.

2.

The short grievance of the Revenue is that the CIT(A) erred in allowing interest U/s 244A of the Act, ignoring the facts that the refund was delayed for reasons attributable to the assessee as no claim of TDS was made in the revised return of income. Page 1 of 4

ITA No.-7267/Del/2019 HCL Infotech Ltd. 3. Briefly stated the facts of the case are that the assessee filed its original return of income on 30.11.2014 claiming TDS of Rs. 15,38,86,689/-. The said return was revised and the revised return of TDS was made at Rs. 25,63,61,108/-. Though the claim of TDS was made properly but due to some technical error, the same could not be reflected in the return of income at the appropriate section.

4.

Realizing the technical error, the assessee immediately filed a complaint with CPC Bangalore on 04.04.2016, pointing out that the claim of TDS is not appearing in ITR whereas it is reflecting in XML file.

5.

On 06.04.2016, the assessee also wrote a letter to the Assessing Officer which reads as under:

ITA No.-7267/Del/2019 HCL Infotech Ltd. 6. In the assessment order dated Nil framed U/s 143(3) of the Act, the AO disallowed the claim of the TDS of Rs. 1,47,50,225/- claimed on deferred revenue but allowed credit for prepaid taxes. On these undisputed facts, it cannot be said that the delay was due to some fault of the assessee and on the given facts, the following findings of the CIT(A) cannot be faulted with:

“6.1.1 I have considered the facts of the case and position of law. In the present case, vide rectification order passed under section 154 of the Act, assessee was granted credit of TDS amounting to Rs.23,17,39,850/-. However, while computing the refund amount, the AO did not provide the interest under section 244A of the Act. 6.1.2 in this regard, the assessee filed appeal before this office claiming that interest under section 244A of the Act. 6.1.3. I have considered the rectification order passed as per the rectification order, there is no clear discussion on how the lapse is attributable to the assessee with regard to claim of interest under section 244A. From the submission made by the appellant as reproduced above, it is clear that appellant is entitled to interest under section 244A of the Act. The appellant has promptly lodged a complaint with CPC and AO about non-appearance of TDS in the acknowledgment of I.T.R. Therefore, in view of the facts, the assessee is entitled to interest under section 244A of the Act as there is nothing on record, which proves that the interest should have been withheld on account of lapse on the part of assessee. In light of same, the AO is instructed to consider the claim of the assessee of interest under section 244A of the Act and pass the necessary appeal effect orders. The ground is treated as allowed.”

7.

Since no error and infirmity is found in the aforementioned findings of the CIT(A), the appeal of the Revenue is dismissed.

Order pronounced in the Open Court on 15.09.2023

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