2016 (3) TMI 248

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.... (i) Whether on the facts and circumstances of the case, the Tribunal was correct in law in holding that the interest u/s 244A of the Income Tax Act, 1961 was payable on refund arising on account of Double Taxation Relief u/s 90 without appreciating that as per the provisions of Section 244A(1)(a) of the Income Tax Act, interest was payable only on refunds arising out of Tax paid / collected in India u/s 115WJ/206C/199 of the Income Tax Act? 3. The respondent assessee filed an appeal before the Income Tax (Appeals) for the subject Assessment Year declaring income of Rs. 16.84 crores. On 30th December, 2005, the Assessing Officer by the order passed under Section 143(3) of the Act, determined the petitioner's income at Rs. 17.....

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....after the determination of the tax payable, one has to determine the tax which has already been paid and to the extent the tax has been paid in advance or by way of deduction at source is refunded then interest in terms of Section 244A of the Act is also to be granted to the assessee. Consequently, CIT(Appeals) directed the Assessing Officer to recompute the interest payable on the refund of tax which has been paid by the respondent assessee in India either in advance or by way of deduction at source. 6. Being aggrieved, the Revenue carried the issue in appeal to the Tribunal. The Tribunal by the impugned order upheld the order dated 22nd March, 2012 of the CIT(Appeals) and held that the DTAA relief / credit is available in respect of th....

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....f the DTAA. The other contentions raised by the Revenue is exactly the direction of the Commissioner of Income Tax (Appeals) and the Tribunal i.e. interest is to be paid on refund of amounts paid as advance tax or TDS. 9. We find that both the Commissioner of Income Tax (Appeals) and the Tribunal have while examining the claim for interest on refund granted, considered the fact that the relief under Section 90 of the Act is available in respect of the income tax which is payable both in India as well as in the other Countries with which India has DTAA. Therefore, relief under Section 90 of the Act is to be allowed while computing the tax liability in India by virtue of credit being given to the extent that tax has been paid abroad. There....