2024 (8) TMI 925

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....-55, Mumbai, dt. 19/03/2023 pertaining to Assessment Year 2006-07. 2. The sum and substance of the grievance of the assessee is that, the ld. CIT(A) erred in confirming the order by which the AO has withdrawn the interest on refund u/s 244A of the Act. 3. Representatives of both the sides were heard at length, case records carefully perused and relevant documentary evidence brought on record, duly considered in the light of Rule 18(6) of the ITAT Rules, 1963. 4. Briefly stated the facts of the case are that, for the AY under consideration, the assessee filed its return of income on 08/01/2008, when the due date for filing the return was 30/09/2006. The returned income was Nil and the tax deducted at source by the payer was claimed ....

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.... ITAT), Grasim Industries Ltd. vs. DCIT in [2022] 143 taxmann.com 261 (Mumbai ITAT) and DBS Bank Ltd. vs. DDIT [2016] 66 taxmann.com 173 (Mumbai ITAT), for the proposition that interest granted earlier cannot be withdrawn by order u/s 154 of the Act as the same does not tantamount to mistake apparent from record. Per contra the ld. D/R strongly supported the findings of the lower authorities. It is the say of the ld. D/R that since the return was a belated return, the AO has rightly withdrawn the interest from the due date of filing of the return till the date of return filed. 8. We have given a thoughtful consideration to the orders of the authorities below. It is not in dispute that the assessee filed its return of income on 08/01/2....

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....urther proposed to provide that an assessee shall be eligible to interest on refund of self-assessment tax for the period beginning from the date of payment of tax or filing of return, whichever is later, to the date on which the refund is granted. For the purpose of determining the order of adjustment of payments received against the taxes due, the prepaid taxes i.e. the TDS, TCS and advance tax shall be adjusted first. It is also proposed to provide that where a refund arises out of appeal effect being delayed beyond the time prescribed under sub-section (5) of section 153, the assessee shall be entitled to receive, in addition to the interest payable under subsection (1) of section 244A, an additional interest on such refund amo....