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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’: NEW DELHI
Before: SHRI N.K. BILLAIYA & SHRI ANUBHAV SHARMA
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.
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.
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.
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.”
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