TaxTMI 
TaxTMI 
2025 (3) TMI 463
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....sessing Officer has levied the tax by discussing as under: "In this connection, the assessee company filed its return of income for A.Y. 2010-11 on 28/09/2010 declaring total income of Rs. (-) 12,59,65,634/- under normal provisions and book profit of Rs. 160,04,09,477 u/s. 115JB. The return of income was duly processed by CPC u/s. 143(1) of the Act on 03/05/2011 and demand of Rs. 10,69,99,920/- was raised. The credit of DDT of Rs. 9,53,58,500/- paid by the assessee company was not granted. Thereafter assessment order u/s. 143(3) r.w.s. 144C(13) of the IT Act was passed in the case of assessee on 06/02/2015 determining total income of Rs. 106,21,34,600/- u/s 115JB. Further, income of the assessee company for A.Y. 2010-11 was revised vide rectification order u/s 154 dated 03/07/2020 determining total income of Rs. 3,68,15,907/- under normal provisions and determining book profit of Rs 160,04,09,477/- u/s. 115JB. 2. On perusal of records, it is noticed that rectification order passed in the case of assessee company on 05/07/2017 wherein credit of DDT of Rs. 9,53,58,500/- paid by the assessee was allowed against DDT demand payable of Rs. 10,43,91,098/- and balance tax....
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....of the assessee is to be increased thereby giving an opportunity of being heard is given to assessee to rectify the above mistake apparent from record and submit its reply by 02/03/2021. However, assessee failed to comply in response to the aforementioned notice issued. Thus, it is presumed that assessee has no objection in response to notice issued vide dated 24/02/2021 and has nothing to offer for enhancing the tax and interest liability by withdrawing excess refund issued. 4. In this case, vide order giving appeal effect to the order of CIT(A) dated 23/01/2020, a refund of Rs. 75,04,960/- was required to be issued to the assessee. Vide order u/s. 154 dated 05/07/2017 it is perused that the gross DDT payable was Rs. 10,43,91,098/- and net DDT payable was Rs. 8,78,53,540/- against which the assessee company had paid Rs. 9,53,58,500/- tax as DDT and balance of Rs. 75,04,960/- required to be refunded to assessee. However, it was noticed that vide order u/s 250 of the Act dated 20/01/2020 ITD software had allowed refund of Rs. 1,14,28,230/-including interest of Rs. 2,06,168/- u/s 244A of the Act which resulted into excess allowance of refund of Rs. 39,23,270/-. Further no in....
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....ing interest of Rs. 39,23,261/-, correctly granted to the appellant us. 244A of the I.T. Act in respect of the refund of excess Dividend Distribution Tax (DDT) paid us 115-O of Rs. 75,04,960/-, pursuant to the order of the then A.O., while giving effect to the Order passed by the Hon'ble CIT(A) in favour of the appellant, granting refund on excess DDT paid us. 115-0. 6. The A.O. had erred in law and on facts in holding that no interest u/s. 244A as referred to in point no. I was payable, since the base refund of Rs. 75,04,960/- was less than 10% of the tax amount 8. Heard both the parties and perused the material available on record. 9. We find that the Ld. CIT(A) held that the provision of section 244A(1)(a) is applicable where refund is out of any TCS u/s 206C or paid as an advance tax or treated as paid u/s 199 of the Act. Similarly, provision of section 244A(1)(aa) is applicable where refund is out of tax paid u/s 140A. In such circumstances, proviso is applicable wherein interest is not eligible u/s 143(1) or regular assessment if the amount of refund is less than the 10% of the tax determined. The appellant's contention is that its case is covered u/s 2....
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.... (1) of section 115WE or] sub-section (1) of section 143 or] on regular assessment; (b) in any other case, such interest shall be calculated at the rate of ^43[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 this clause, "date of payment of tax or penalty" means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 156 is paid in excess of such demand. (2) If the proceedings resulting in the refund are delayed for reasons attributable to the assessee, whether wholly or in part, the period of the delay so attributable to him shall be excluded from the period for which interest is payable, and where any question arises as to the period to be excluded, it shall be decided by the Chief Commissioner or Commissioner whose decision thereon shall be final. (3) Where, as a result of an order under [sub-section (3) of section 115WE or section 115WF or section 115WG or] [sub-section (3) of section 143 or secti....