2019 (2) TMI 1515

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....he above appeal are the following:- (1) Whether the Income Tax Appellate Tribunal was justified in having declined interest to the assessee for the refund under Section 244 of the Income Tax Act, 1961 ("Act" for short) invoking sub-Section (2) of Section 244A ? (2) Whether on the facts and in the circumstances of the case, has not the Tribunal understood the issue in the wrong perspective and is not the final decision perverse insofar as the fact adjudication is concerned ? 2. The issue arises in the assessment year 2002-03. The original return of the assessee was filed on 29.10.2002 and a revised return on 22.03.2004. The assessee was issued with an order dated 03.08.2006 computing refund at Rs. 34,53,882/-. There was ....

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.... Rs. 1,71,76,655/-. To that extent at least up to that date delay in granting the full refund is attributable to the assessee. c) Further the assessee has not furnished Form No.29B (MAT computation statement) as required u/s 115JB(4) along with the revised return but was filed only on 02.08.2006. Thus it is evident that the delay in granting the refund is attributable to the assessee." 5. Interest was found to be running only from 02.08.2006 since Form-29B (MAT computation statement) as required under Section 115JB(4) was filed on 02.08.2006. Later in the order it was found that such statement was filed on 07.09.2006. It was hence that Annexure-J confined the interest @ 0.5% between 08.09.2006 to 31.10.2006. The first appeal and....

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....ng the period of delay. 8. The assessee has relied on (2012) 340 ITR 574 (Ker) [Commissioner of Income Tax v. South Indian Bank Ltd.]. Therein the assessee had not made a claim, in the return, for provision made for bad debts under Section 36(1)(vii)(a). In the course of the assessment proceedings, the assessee made a claim, which was declined by the AO. In first appeal, the same was allowed and while granting refund, the CIT declined interest up to 10.01.2001, the date on which the assessee had raised a claim for bad debts before the AO in the course of the assessment proceedings. A Division Bench of this Court found that there is no provision in the Act which restricts the interest up to the time when a deduction is claimed, which is n....