2024 (9) TMI 855

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.... 1961 (hereinafter referred to as "the Act"), dated 26.08.2021. The said order of CIT(A) is directed against the order passed by the Assistant Commissioner of Income Tax, Circle 5(2)(1), Ahmedabad (hereinafter referred to as "AO"), under section 154 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for the assessment year 1992-93, dated 06.03.2019. Facts of the Case 2. The assessee is a discretionary trust engaged in various activities, and the issue under consideration is for the A.Y. 1992-93. The primary issue in this appeal concerns the grant of interest under section 244A of the Act, particularly regarding the additional interest claimed by the assessee for the delayed refund. 3. The original assessment order w....

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....fund due. On the Grounds of appeal 5. Before us the Authorised Representative (AR) for the assessee argued that the AO had incorrectly calculated the interest due on the refund. The AR contended that the AO should have first adjusted the refund against the interest component and then against the tax component, as per the principles of equity and fairness. 6. The chronology of events leading up to this appeal, as presented by the AR along with supporting documents, is as follows: * 20.12.1992: The assessee filed its return of income (ROI) declaring an income of Rs. 1.53 crores. * 23.03.1993: An intimation under section 143(1) was issued, computing the tax due at Rs. 86.51 lakhs. However, a credit for self-assessmen....

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....016: An order giving effect (OGE) to the CIT(A)'s order was passed, granting interest of Rs. 4,00,000. * 05.07.2016: The refund of Rs. 4,00,000 was issued to the assessee. * 21.08.2017: The assessee filed another application under section 154, arguing that the refund issued should first be adjusted against the interest component and then against the principal. Based on this computation, the assessee claimed that the revenue still owed Rs. 12,14,242. * 06.03.2019: The AO passed an order under section 154, rejecting the assessee's application. * 26.08.2021: The CIT(A) dismissed the assessee's appeal, leading to the present appeal before the Tribunal. 7. The AR further submitted that the provi....

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....layed beyond the time limit specified under Section 153(5) of the Act. On the timing of applicability of interest, the CIT(A) concluded that the order giving effect to the CIT(A)'s earlier order was passed on 04.05.2016, before the applicability of Section 153(5) and Section 244A(1A), therefore, these provisions do not apply to the appellant's case. 10. The primary issue for our consideration is whether the assessee is entitled to additional interest under section 244A(1A) of the Act and whether the AO correctly adjusted the refund against the interest component. 11. The CIT(A) had observed that section 244A(1A) was not applicable because the order giving effect to the CIT(A)'s order was passed before the introduction of s....