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| The Tax Publishers2020 TaxPub(DT) 0659 (Mad-HC) INCOME TAX ACT, 1961
Section 119
Where power has been given under circular to CCIT for refund of amount not exceeding Rs. 50,00,000 and circular also makes it clear that no interest will be admissible in case of belated refund claims, therefore, matter was remanded back to AO to pass appropriate order, keeping in mind, purpose of circular issued under section 119 by construing it liberally.
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Instruction to subordinate authorities - Interest on belated refund claims - -
Assessee had filed application for Interest on belated refund claims which was rejected. CBDT has issued Circular dated 22-12-2006 under section 119 (Instruction No. 13 of 2006). The said circular has modified the then existing circular and has delegated the powers to pass orders under section 119(2)(b) for processing refund claims below Rs. 50,00,000. Held: Power has been given under circular to CCIT for refund of amount not exceeding Rs. 50,00,000. Circular also makes it clear that no interest will be admissible in case of belated refund claims. High Court in case of Sitaldas K.Motwani v. DGIT and ors. [(2010) 323 ITR 0223 (Bom) : 2010 TaxPub(DT) 1180 (Bom-HC)] had also considered this circular and had remitted back to the authority to consider the question of hardship as well as the correctness and genuineness of the refund claim. Therefore, present case should also be remanded back to AO to pass appropriate order, keeping in mind, purpose of circular issued under section 119 by construing it liberally.
REFERRED :
FAVOUR : Matter remanded
A.Y. :
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