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of <h1>Court directs interest payment on enhanced refund, emphasizes assessee's responsibility, importance of timely claims</h1> <h3>HHA TANK TERMINAL (P) LTD. Versus THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1 (2), ERNAKULAM, KOCHI</h3> HHA TANK TERMINAL (P) LTD. Versus THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1 (2), ERNAKULAM, KOCHI - [2020] 420 ITR 395 (Ker) Issues:1. Whether the Income Tax Appellate Tribunal was justified in declining interest to the assessee for the refund under Section 244 of the Income Tax Act, 1961 invoking sub-Section (2) of Section 244ARs.2. Whether the Tribunal understood the issue incorrectly and the final decision was perverse concerning fact adjudicationRs.Analysis:Issue 1:The case pertains to the assessment year 2002-03 where the original return was filed on 29.10.2002, and a revised return on 22.03.2004. The assessee claimed a refund, which was initially not accompanied by interest under Section 244. Subsequently, a rectification order was issued under Section 154, reducing the interest granted. The dispute arose due to the delay in granting the full refund, attributed by the tax authorities to the assessee's actions. The Tribunal's decision to limit interest from a specific date was challenged by the assessee, arguing that the delay was not attributable to them.Issue 2:The key contention revolved around the significance of filing Form-29B (MAT computation statement) along with the return. The assessee argued that the filing of this form was not crucial for processing the refund under Section 143(1) and determining MAT. The delay in filing Form-29B was cited as the reason for reducing interest by the tax authorities. However, the Court found that the processing and refund computation were done before the filing of Form-29B, indicating that the delay was not caused by the assessee. The Court also highlighted a previous case where interest was granted in full despite a late claim, emphasizing the importance of assessing each situation on its merits.In conclusion, the Court partially favored the assessee, directing the tax authorities to grant interest from the date specified by the Court, emphasizing that the delay in claiming the enhanced refund was attributable to the assessee only from the date of the revised return. The judgment highlighted the importance of considering the specific circumstances of each case and ensuring that interest is granted appropriately in line with the provisions of the Income Tax Act, 1961.
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