TaxTMI 
TaxTMI 
2015 (10) TMI 2163
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....6 of 1999 dated 8/9/2006 in the assessee's case whereby the total income came to be reduced to Rs. 9,39,406/- from the originally assessed income of Rs. 30,95,390/-. The Assessing Officer passed an order giving effect (hereafter referred to as 'OGE) to the Hon'ble High Court order whereby the refundable amount was determined at Rs. 48,08,868/- which included an amount of Rs. 26,58,286/- towards interest payable u/s 244A of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). The OGE did not contain or mention the date of the order and the refund arising out of the undated order was paid to the assessee vide cheque dated 8/5/2007. 2.2 After a lapse of considerable time, it was found that the refund has been granted to the assess....
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....rder dated 26/11/2013. 3.1 Aggrieved by the order of the CIT(A)-II, Bangalore dated 26/11/2013 for asst. year 1992-93 the assessee preferred this appeal raising the following grounds: "1) The order u/s 154 of the Income-tax Act, 1961 passed by the Assessing Officer is time barred and hence to be set aside. 2) If it were to be held that the order u/s 154 of the Income-tax Act, 1961 passed by the Assessing Officer is not time barred then, interest u/s 234D charged by the AO on recovery of excess interest granted earlier u/s 244A is illegal and hence to be withdrawn. 3) The appeal may be allowed for the above ground(s) and any other grounds(s) which the appellant may be permitted to adduce at the time of hearing." 3.2 In the proceed....
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.... contention of the assessee is that the interest charged u/s 234D of the Act is wrong and requires to be withdrawn. It may be mentioned here that the objection of the assessee is not in respect of withdrawal of the excess interest charged u/s 244A of the Act, but is only on the charging of interest u/s 234D on the same. The learned CIT(A) has dismissed the contention of the assessee observing that- (i) The section only mentions the interest to be charged on the excess refund granted earlier. (ii) Since the assessee enjoyed excess refund to which he was not entitled, the charged interest u/s 234D of the Act is charged on such refund upto the period which he enjoyed the excess refund. (iii) The interest charged u/s 234D of the Act is ....
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....under section 147 or section 153A, the assessment so made shall be regarded as a regular assessment for the purposes of this section.] From the provisions of section 234D of the Act, the two attendant conditions stipulated for charging of interest are- (a) Any refund granted to the assessee u/s 143(1) of the Act, AND (b) - No refund is due on regular assessment OR - - The amount of refund u/s 143(1) of the Act exceeds the amount refundable on regular assessment 3.4.4 Therefore, the first condition for charging of interest u/s 234D of the Act is that there should have been refund granted to the assessee u/s 143(1) of the Act. This principle has been upheld by the Hon'ble High Court of Bombay in the case of DIT(Int. Taxation)....
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....atisfied. 3.4.7 Further, the refund has arisen due to an order giving effect to an appellate order, which was subsequently rectified u/s 154 of the Act, wherein the interest u/s 234D of the Act was charged. In these circumstances, the second condition that refund granted earlier becomes refundable to Revenue on regular assessment is also not satisfied. 3.4.8 In view of the factual matrix of the case on hand, as discussed above, we are of the considered opinion that both the conditions for charging of interest u/s 234D of the Act are not satisfied. Consequently ground No.2 raised by the assessee is allowed. 4. As regards the contention raised by the assessee in ground No.1 that the order u/s 154 of the Act was barred by limitation, the do....