Assessee entitled to section 244A interest despite delay in filing revised return when delay caused by tax authorities

ITAT Ahmedabad held that the assessee was entitled to interest under section 244A despite delay in filing revised return. The tribunal found no delay attributable to the assessee after filing revised return on 16.10.2017. The delay was caused by CPC and jurisdictional AO's failure to credit advance tax and TDS to Torrent Power Ltd. Since Revenue collected demand with interest from TPL due to non-crediting while denying interest to the assessee, this was deemed arbitrary. Revenue was directed to grant interest under section 244A from revised return filing date until refund issuance. Appeal allowed.

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Issues:
Delay in filing appeal, Granting interest under Section 244A of the Income Tax Act, 1961.

Analysis:
The appeal was filed by the assessee against the order of the National Faceless Appeal Centre for the Assessment Year 2016-17, with a delay of 95 days. The reason for the delay was explained by the assessee, stating that the appeal order was received by authorized persons via email but not brought to the company's notice on time. The Revenue did not object to the condonation of the delay, leading to the delay being condoned.

The only ground taken by the assessee in the appeal was regarding the refusal to grant interest under Section 244A of the Income Tax Act, 1961. The case involved the transfer of Solar & Wind Energy undertaking to another company, leading to a revised return and subsequent refund issues. The AO had allowed the refund but denied interest under Section 244A, attributing the delay to the assessee.

During the appeal, the assessee argued that the delay was not on their part but due to the Revenue's actions. The Revenue contended that since no refund was claimed in the revised return, interest under Section 244A was not applicable. The Tribunal examined the facts and found that the delay was due to the CPC and Jurisdictional AO's failure to credit advance tax and TDS to the new company. As a result, the Tribunal directed the Revenue to grant interest under Section 244A to the assessee from the date of filing the revised return.

In conclusion, the Tribunal allowed the appeal by the assessee, emphasizing that the delay in granting interest under Section 244A was not the assessee's fault but a result of the Revenue's actions. The Tribunal directed the Revenue to pay interest to the assessee from the date of filing the revised return till the date of the refund issuance.

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