INCOME TAX ACT, 1961

Section 244A

Interest on refund - Proceedings resulting in refund delayed for reasons attributable to assessee - -

Assessee had not claimed certain expenditure before AO but eventually raised such a claim before Tribunal, upon which, the Tribunal remanded the proceedings to CIT(A). As such stage, additional benefit claimed by assessee was granted. This resulted in refund and the question of payment of interest on such refund. In case of refunds payable to assessee, interest in terms of sub-section (1) of section 244A would be payable. Section 244A(2), however, provides that if proceedings resulting in the refund were delayed for reasons attributable to assessee, whether wholly or in part, the period of delay so attributable, would be excluded from the period for which interest is payable under sub-section (1) of section 244A. Held: There was no allegation or material on record to suggest that any of the proceedings hit assessee's appeal before Tribunal or remanded the proceedings before the CIT(A) whether in any manner delayed for reasons attributable to the assessee. Tribunal, was, therefore, correct in allowing the interest to assessee. Assessee had made a belated claim during assessment by filing revised return. According to Revenue, this would entitle assessee for claim of interest to the extent of delay.

REFERRED : Ajanta Manufacturing Limited v. DCIT (2017) 391 ITR 33 (Guj) : 2016 TaxPub(DT) 3588 (Guj-HC) CIT v. South Indian Bank Ltd. (2012) 340 ITR 574 (Ker) : 2011 TaxPub(DT) 1073 (Ker-HC)

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT