TaxTMI 
TaxTMI 
2022 (8) TMI 1266
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....f"CIT(A)"} u/s. 250 of the Income Tax Act, 1961 ("the Act") Short grant of interest U/s 244A by Rs.23,19,590/-. 1. On the facts and circumstance of the case and in law the Learned CIT(A) has erred in dismissing the appeal of appellant by holding that the grounds of appeal filed before him are not arising out of order dated March 30. 2021 passed U/s 143(1) of the IT Act. 1961. 2. The CIT(A) has further erred in making the following irrelevant, incorrect and /or immaterial observations in the order passed U/s 250: (1) The computation of interest under section 244A in the intimation order issued under section 143(1) of the Act is found correct as the same is up to the date of said intimation: (2)Delay in issue of refund. does no....
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..../ or amend all or any of the foregoing grounds of appeal." 2. Brief facts undisputedly assessee filed its return of income on 15/02/2021 declaring loss of Rs. 31,44,56,14,063/-. 2.1 The assessee filed its return of income on 15/02/2021 declaring therein loss of Rs.3144,56,14,063/- and book profit u/s. 115JB was worked out in the negative of Rs.16,46,88,87,764/-. The tax payable were worked out at Rs. Nil as against the amount of prepaid taxes of Rs. 3,56,85,862/- comprising of tax deduction at source of Rs.3,56,85,862/-. Accordingly, a tax refund of Rs.3,56,85,862/- was claimed in the return of income. 2.2 The return of income for the A.Y. 2020-21 was processed by the Assistant Director of Income Tax (CPC), Bangalore vide intimation ord....
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....ed to the assessee by way of manual refund cheque dated 29/03/2022 and the same has been credited to assessee's bank account in April 2022. In other words, the tax refund amount for AY 2020- 21 as claimed in the return of income is actually granted to the assessee in the month of April 2022 i.e. on 13/04/2022 after a period of 25 months. 2.6 It is the contention of the assessee that it would be entitled to interest u/s. 244A of Rs. 44,60,730/- as against which interest of Rs. 21,41,150/- is granted resulting in short grant of interest u/s. 244A by Rs. 23,19,580/-. 3. The Ld.CIT(A) considered assessee's submissions by observing as under: "4.3 The submissions of the appellant have duly been considered. The undisputed fact is that the orde....
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....he issue of said intimation i.e delay in issue of refund, does not make the order under Section 143(1) of the Act faulty. So the solution is not in filing appeal against the order under Section 143(1) of the Act but somewhere else. The case laws relied upon by the appellant are on different facts and thus not relevant. 4.4 Considering above, there isn't any merit in the arguments of the appellant and the appeal is dismissed as the issues raised in the grounds of appeal are not arising out of the impugned order but a subsequent action of the AO in not issuing the refund on time. The appellant is free to take suitable remedial action to get its grievance addressed as per law. The grounds of appeal are accordingly dismissed." 4. Aggri....
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....so by the Revenue. They are of the view that in Sandvik case [Supra] this Court had directed the Revenue to pay interest on the statutory interest in case of delay in the payment. In other words, the interpretation placed is that the Revenue is obliged to pay an interest on interest in the event of its failure to refund the interest payable within the statutory period. 7. As we have already noted, in Sandvik case [Supra] this Court was considering the issue whether an assessee who is made to wait for refund of interest for decades be compensated for the great prejudice cause to it due to the delay in its payment after the lapse of statutory period. In the ITA NOs. 5231, 5232 & 5233/MUM/2019 ITA NOs. 4892 & 4893/MUM/2019 M/s. Bharat Petro....