TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 87
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....g the interest u/s. 244A of the Income Tax Act, 1961 ('the Act'). 2. That on the facts and in the circumstances of the case, the Ld CIT(A) has erred in holding that ground for interest 244A of the Act is not arising out of the rectification application dated 06-06-2022 filed by the appellant before the assessing officer. 3. On the facts and in the circumstances of the case, the Ld CIT(A) erred in rejecting the claim of the Appellant Company of granting interest on Income Tax refund under Section 244A(2) of the Income- tax Act, 1961 ('the Act') without properly addressing the ground raised by the Appellant Company. 4. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in interpreting the provisions of section 244A of the Income-tax Act, 1961 and the fact of the case. 5. The Appellant submits that the learned AO be directed to re-compute and grant interest under section 244A of the Act, up to the date of issue of refund cheque and in accordance with law. 6. That the appellant craves leave to add, to amend, modify, rescind, supplement or alter any of the Grounds stated here-in-above, either before or at the time of hearing o....
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....by the AO vide rectification order dated 12.07.2022 is out of the prepaid tax in the form of TDS. He thus, submitted that assessee is entitled to refund as per section 244A(1)(a)(i)of the Act i.e. from the 01.04.2017 relevant to AY 2017-18 and necessary directions may be given for giving correct amount of interest. 7. On the other hand, ld. DR vehemently argued supporting the orders of the lower authorities and stated that the assessee has revised a return on multiple occasions. There had been reference to TPO, and also in the revised return furnished on 30.03.2019 the assessee had claimed refund of only Rs. 2,89,36,036/- and it was only on account of set off of MAT credit u/s. 115JJAA of the Act that the claim of refund has increased and such claim for set off of MAT credit u/s. 115JJAA of the act was made on 06.06.2022 and, therefore, the AO has given the refund for five months. 8. We have heard rival contentions and perused the records placed before us. We note that the assessee originally filed the return on 29.11.2017 and in this return TDS credit of Rs. 81,86,10,024/- was claimed and this amount was finally revised in the revised return on 30.03.2019 claiming TDS on Rs. 75,....
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....of the assessment year to the date on which the refund is granted, if the return of income has been furnished on or before the due date specified under sub-section (1) of section 139; or (ii) from the date of furnishing of return of income to the date on which the refund is granted, in a case not covered under sub-clause (i); (aa) where the refund is out of any tax paid under section 140A, such interest shall be calculated at the rate of 5 [one-half per cent.] for every month or part of a month comprised in the period, from the date of furnishing of return of income or payment of tax, whichever is later, to the date on which the refund is granted: Provided that no interest under clause (a) or clause (aa) 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 143 or on regular assessment;] (b) in any other case, such interest shall be calculated at the rate of 5 [one-half per cent.] for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation.-For the purposes of ....
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....amount on which interest was payable under sub-section (1) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and in a case where the interest is reduced, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the amount of the excess interest paid and requiring him to pay such amount; and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly. (4) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989, and subsequent assessment years:] 7 [Provided that in respect of assessment of fringe benefits, the provisions of this sub-section shall have effect as if for the figures "1989", the figures "2006" had been substituted.]" 10. Now, from perusal of the above section, we notice that assessee's case falls under the category of sec. 244A(1)(a)(i) of the Act because the refund order to the assessee is out of the tax deducted at source upto 31.03.2017 and the assessee had furnished its original return u/s 139(1) of the Act. Even though t....