2021 (12) TMI 442

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....iness promotion 779667 ii. Car Expenses & Repair 148210 iii. Festival Expenses 124969 iv. Telephone Expenses 297370 v. Staff Welfare 1157390 vi. General Expenses 136508   Total 26,44,114 4. It was further observed by the AO that, on perusal of complete bills and vouchers and other related details regarding the aforesaid expenses and on verification of books of accounts alongwith ledger account that assessee has not maintained any      separate ledger for personal nature of expenses and certain vouchers and bills were not produced. Accordingly, he disallowed 1/5th of these expenses on adhoc basis holding that the same could be of personal in nature and accordingly, made disallowance of Rs. 5,28,822/-. Ld. CIT(A), reduced the disallowance to 15%. 5. After hearing both the parties and on perusal of the impugned order, we find that both the parties had categorically admitted that assessee has maintained regular books of accounts and complete bills and vouchers and other related details regarding the expenses which were filed by the assessee. Simply because assessee has not maintained separate ledger....

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....2014) 6SCC 335. Section 244A reads as under: "244-A. Interest on refunds.-(1) Where refund of any amount becomes due to the assessee under this Act, he shall, subject to the provisions of this section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely:- (a) where the refund is out of any tax paid u/s. 115- WJ or collected at source u/s. 206-C or paid by way of advance tax or treated as paid u/s. 199, during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period from the 1st day of April of the assessment year to the date on which the refund is granted: Provided that no interest shall be payable if the amount of refund is less than ten per cent of the tax as determined under sub-section (1) of Section 115-WE or sub-section (1) of Section 143 or on regular assessment; (b) in any other case, such interest shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period or periods from the date or, as ....

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....lowing grounds:- 1. That circular number 769 and 790 issued by CBDT specifically deny the benefit of interest u/s 244A on refund to the Deductor/resident; and 2. That a conjoint reading of section 156 and the explanation appended to section 244A(1)(b) would indicate that the amount refunded to the Deductor/resident cannot be equated to the refund of the amount(s) envisaged u/s. 244A(1)(b) of the Act, wherein only the interest on refund of excess payment made u/s. 156 of the Act pursuant to a notice of demand issued on account of post-assessment tax is contemplated and not interest on refund of tax deposited under self assessment as in the instant case. 8.1 The ITAT reversed the order of the CIT (A) by holding that the tax was paid by the Deductor/ resident pursuant to an order passed u/s. 195 (2) of the Act and the refund was ordered u/s. 240 of the Act, therefore, the provisions of Section 244A(1)(b) are clearly attracted and the revenue is obliged to pay interest on the aforesaid amount of refund. High Court refused to interfere with the order of the tribunal. The revenue challenged the order before the Supreme Court. The Apex Court dismissed the appeal and r....

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.... evade its obligation to refund the money with accrued interest for the period of undue retention. In this regard the Apex Court held as follows:- Providing for payment of interest in case of refund of amounts paid as tax or deemed tax or advance tax is a method now statutorily adopted by fiscal legislation to ensure that the aforesaid amount of tax which has been duly paid in prescribed time and provisions in that behalf form part of the recovery machinery provided in a taxing statute. Refund due and payable to the assessee is debt-owed and payable by the Revenue. The Government, there-being no express statutory provision for withholding payment of interest on the refund of excess amount/tax collected by the Revenue, cannot shrug off its apparent obligation to reimburse the deductors lawful monies with the accrued interest for the period of undue retention of such monies. The State having received the money without right, and having retained and used it, is bound to make the party good, just as an individual would be under like circumstances. The obligation to refund money received and retained without right implies and carries with it the right to interest. Whenever mone....

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....he Act. This is so as it is neither the payment of tax by way of advance tax or by way of tax deducted at source. Thus tax paid on self assessment would fall u/s. 244A(1)(b) of the Act, i.e. a residuary clause covering refunds of amount not falling u/s. 244A(1) of the Act. The revenue contends that in the absence of tax on self assessment finding mention in Section 244A(1)(a) of the Act, no interest is payable u/s. 244A(1) of the Act and Section 244A(1)(b) of the Act would have no application. This contention is opposed to the meaning of the provision disclosed even on a bare reading. If the tax paid is not covered by clause (a) of Section 244A(1), it falls within clause (b, which is a residuary clause. Besides, this contention stands negatived by the CBDT Circular bearing No. 549 dated 31 October 1989 wherein reference is made to Section 244A and para 11.4 thereof reads as under (see [1990] 182 ITR (St) 1, 49 ): "11.4 The provisions of the new section 244A are as under:- (i) Sub-section (1) provides that where in pursuance of any order passed under this Act, refund of any amount becomes due to the assessee then- (a) if the refund is out of any advance tax paid or....