2022 (12) TMI 329

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....erest on income tax refund On the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) [CIT(A)] erred in upholding the withdrawal of interest amounting to Rs.43,71,038 under section 244A of the Income Tax Act, 1961 ("the Act‟) made by the Deputy Commissioner of Income tax, Range 13(1)(1), Mumbai ("the learned AO‟) The Appellant prays that the interest amounting to Rs.43,71,038 to be granted to the Appellant. 2. Ground No. 2 : No jurisdiction of rectification under section 154 of the Act for a debatable issue On the facts and in the circumstances of the case and in law, the CIT(A) erred in upholding the initiation of rectification proceedings by learned AO as there is m....

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.... delay in refund. As to what should be done in such a situation, we find guidance from section 244A(2) itself which inter alia provides that "where any question arises about the period to be excluded (for which interest is to be declined), it shall be decided by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, whose decision thereon shall be final". Clearly, therefore, final call about the period to be excluded for grant of interest is to be taken by the higher authority and that exercise is admittedly not done in the present case. In this background, we may refer to the following observations in a co-ordinate bench decision in the case of DBS Bank Ltd. vs DDIT [(2016) 157 ITD 476 (Mum)]:- ....