2021 (2) TMI 526

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....CIT(A)-13/ACIT-7(1)(1)/211/2015-16, CIT(A)-13/ACIT-7(1)(1)/212/2015-16, CIT(A)-12/ACIT-6(3)/28/2010-11 dated 11/12/2015 & 28/06/2011 respectively (ld. CIT(A) in short) against the order of assessment passed u/s.115 WE(3) r.w.s. 254 of the Income Tax Act, 1961 & 115 WE(3) of the Act FBT (hereinafter referred to as Act) dated 02/12/2009 & 20/08/2010 respectively by the ld. Addl. Commissioner of Income Tax, Range-6(3), Mumbai (hereinafter referred to as ld. AO). 2. The only issue to be decided in the cross appeals for both the years is calculation of interest u/s.244A of the Act. 3. We have heard rival submissions and perused the materials available on record. We find that this Tribunal vide its common order for A.Yrs. 2006-07 and 2007-0....

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....sessee's ground for allowing interest on the said amount for the period of delay on the alleged ground that it amounts to compensation by way of interest on interest. 4. Aggrieved by the aforesaid order of the ld. CIT(A), the assessee is in appeal before us seeking correct allowance of interest as per law u/s.244A of the Act and revenue is in appeal challenging the order of the ld. CIT(A) directing the ld. AO to grant interest on self-assessment tax u/s.244A(1)(b) of the Act. 5. It is pertinent to note that the revenue had not preferred any appeal before us challenging the direction of the ld. CIT(A) to grant interest on advance tax from first day of assessment year u/s.244A(1)(a) of the Act and hence, this matter has attained finalit....

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....ce amount is to be adjusted against tax paid. Accordingly, unpaid amount is the tax component and therefore, the assessee would be entitled for claiming interest on the tax component remaining unpaid. In our considered opinion, the same would not tantamount to interest on interest as alleged by the ld. CIT(A) in para 4.2 on his order. Similarly, the refund granted to the assessee in July 2016 is to be adjusted against the correct interest payable on the tax amount remaining unpaid and balance towards tax component. We find that this issue is already settled in favour of the assessee by the following decisions of this Tribunal:- a. Decision in the case of Union Bank of India vs. ACIT reported in 162 ITD 142 dated 11/08/2016 ....

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....id not claim refund in the return of income. In this regard, we find that the ld. AR had submitted that delay is not at all attributable to the assessee and that the provisions of Section 244A(2) are not applicable as the assessee while filing its return for A.Yrs. 2007-08 and 2008-09 had indeed made a claim in the return of income by way of notes to the return of income and had also clarified in the said note that tax has been paid on certain fringe benefits only out of abundant caution. We find that this fact has even been noted by the ld. CIT(A) in para 3.3 of his order and also by the order of the Hon'ble Bombay High Court confirming the decision of this Tribunal in relation to fringe benefits wherein it has been mentioned at para 3(e),....