2018 (4) TMI 1661 - HC - Income Tax

Appeal dismissed, interest on excess tax refund allowed, no costs awarded

The Pr. Commissioner of Income Tax 2 Versus Bank of India

The Court dismissed the appeal, ruling that interest under Section 244A of the Income Tax Act should be allowed on excess self-assessment tax refunded to ... Eligibility to Interest u/s. 244A - self assessment tax refunded to the assessee - Self assessment tax as voluntarily paid by the assessee and not pursuant to a notice of demand issued u/s. 156 - HELD THAT:- The impugned order of the Tribunal has held that the Assessee is entitled to interest u/s 244A on the refund of the excess self assessment tax paid by it. This by following the decision of this Court in Stock Holding Corporation of India Ltd., v/s. N. C. Tewari, Commissioner of Income Tax & Others [2014 (11) TMI 899 - BOMBAY HIGH COURT] - No substantial question of law. Interest u/s 244A allowed on the self assessment tax refunded to the assessee - grievance of the Revenue that order of the Tribunal erred in ignoring the decision of CIT v/s. Engineers India Ltd., [2015 (3) TMI 110 - DELHI HIGH COURT] while allowing the appeal of the Assessee - HELD THAT:- The grievance of the Revenue is unsustainable in law. This is so, as the Tribunal is bound by the decision of the jurisdictional High Court as held in East India Commercial v/s. Collector of Customs [1962 (5) TMI 23 - SUPREME COURT OF INDIA] and in CIT v/s. Thane Electricity Supply Co. Ltd. [1993 (4) TMI 37 - BOMBAY HIGH COURT] - No fault can be found with the impugned order of the Tribunal in allowing the Assessee's appeal by following the decision of this Court in Stock Holding Corporation [2014 (11) TMI 899 - BOMBAY HIGH COURT]. It may also be pointed out in passing, that the decision of the Delhi High Court in Engineering India Ltd. has been set aside by the Apex Court in Engineers India Ltd., v/s. CIT [2017 (7) TMI 873 - SUPREME COURT] - Decided against revenue Issues:1. Whether interest u/s. 244A is to be allowed on self-assessment tax refunded to the assesseeRs.2. Whether the Tribunal was correct in allowing interest u/s. 244A on self-assessment tax refunded to the assessee despite a decision by the Delhi High Court in a similar caseRs.Analysis:Issue 1:The High Court examined whether interest under Section 244A of the Income Tax Act should be granted on the excess self-assessment tax refunded to the assessee. The Tribunal's order favored the Respondent-Assessee's entitlement to such interest, citing a previous decision by the Court in Stock Holding Corporation of India Ltd. v/s. N. C. Tewari. The Court found that this issue did not raise any substantial question of law and thus did not entertain it.Issue 2:Regarding the second issue, the Revenue contended that the Tribunal erred in disregarding a decision by the Delhi High Court in CIT v/s. Engineers India Ltd. while allowing the appeal of the Respondent-Assessee. The Court held that the Tribunal is bound by the decisions of the jurisdictional High Court, as established by precedents like East India Commercial v/s. Collector of Customs. Consequently, the Court found no fault with the Tribunal's decision to follow the Court's ruling in Stock Holding Corporation. Additionally, it noted that the Delhi High Court's decision in Engineers India Ltd. had been set aside by the Apex Court and remanded for fresh consideration. As a result, this issue also did not raise any substantial question of law and was not entertained.In conclusion, the Court dismissed the appeal, stating that no costs were to be awarded in the matter.