The Tax Publishers2020 TaxPub(DT) 3533 (HP-HC) : (2020) 428 ITR 0264 : (2020) 274 TAXMAN 0397

INCOME TAX ACT, 1961

Section 254

Where revenue Authorities have been directed vide Notification dated 8-8-2019 to file appeals in income tax cases before the High Court where monetary limit is less than Rs. 1.00 crore and where it is above the said amount, that shall not be a subject matter of appeal before High Court, but there is an exception to the effect that in certain circumstances, an appeal should be contested on merits notwithstanding the fact that the tax effect entailed is less than Rs. 1.00 crore, however, no such exception was available to Revenue, accordingly appeal was dismissed.

Appeal (Tribunal) - Interest under section 244A - Delayed payment of excess tax paid - Monetary limit to maintain appeal

This appeal was directed by Revenue against the order passed in Miscellenous Application. Case of assessee was that for the assessment years 1996-97 to 1999-2000, certain refunds arising out of excess TDS were issued in favour of the assessee. However, interest under Section 244A was not paid in respect of some of the refunds, while in the case of some other refunds, interest was paid for a shorter period than what was claimed by assessee. It was averred in the appeal that the interest was refused on the ground that delay in issuing refund was attributable to the assessee. Revenue challenged the same by way of Miscellaneous Application before ITAT which came to be dismissed as being misconceived and not maintainable and also on the ground that there was no error apparent on record. Held:As decided in M/S. Heg. Ltd. [2010 TaxPub(DT) 1107 (SC)] the interest on the delayed refund becomes part of principle amount and delayed interest includes the interest for not refunding the principle amount. Revenue Authorities have been directed vide Notification dated 8-8-2019 to file appeals in income tax cases before the High Court where monetary limit is less than Rs. 1.00 crore and where it is above the said amount, that shall not be a subject matter of appeal before the High Court. But, in the Notification dated 11-7-2018, there is an exception to effect that in certain circumstances, an appeal should be contested on merits notwithstanding the fact that the tax effect entailed is less than Rs. 1.00 crore. Thus, in present case, no such exception was available to Revenue and accordingly, appeal was dismissed.

Followed:Pr. CIT v. Ambuja Darla Kashlog Mangoo Transport Co-operative Society [ITA No. 20/2019, dt. 25-11-2019] : 2020 TaxPub(DT) 1686 (HL-HC). Relied:CIT v. Gujarat Fluoro Chemicals (2014) 1 SCC 126 : 2014 TaxPub(DT) 1540 (SC) CIT v. HEG. Limited 2010 TaxPub(DT) 1107 (SC), Dy. CIT v. Solan District Truck Operators Transport Co-op Society Ltd. [M.A. Nos. 10 to 12/Chd/2019 [Arising out of ITA Nos. 277 to 279/CHD/2017- decided vide order 31-10-2017), dt. 7-8-2019], Solan District Truck Operators Transport Co-op Society Ltd. v. Dy.CIT [ITA Nos. 277 to 279/Chd/2017, dt. 31-10-2017],

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 1996-97

IN THE HIMACHAL PRADESH HIGH COURT

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