TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 654
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....92,78,473/-. 3. Alternatively, and without prejudice the interest u/s. 244A of the Act on refund of Rs. 10,92,78,473/- shall be allowed till the date of preparation of demand draft order as directed by CIT(A) i.e. till September, 2018. 4. The Ld. CIT(A) has erred in law and on facts of the case in holding that the appellant is not eligible to receive Rs. 9,460/- on account of short grant of interest u/s. 244A of the Act on refund of Rs. 1,11,297/-. 5. Alternatively, and without prejudice, the interest u/s. 244A of the Act on refund of Rs. 1,11,297/- shall be allowed till the date of preparation of demand draft order as directed by CIT(A) i.e. till November, 2020. 6. The Ld. CIT(A) has erred in law and on facts of the case in not following the order for preceding year passed by his predecessor allowing short grant of interest on refund u/s. 244A of the Act on identical facts. 7. The Ld. CIT(A) has erred in law and on facts of the case in holding that the appellant was granted excess interest on refund on erroneous interpretation that the appellant's case falls under sub-clause (ii) instead of sub-clause (i) of Section 244A(1)(a) of the Ac....
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.... for interest under section 244A(1)(a)(ii). 4. Before the CIT(Appeals), the assessee reiterated its contention that interest under section 244A was required to be computed up to the date of credit of refund into its bank account, and that the term "granted" in section 244A should be interpreted to mean the actual date of receipt or realization of the refund, and not merely the date of issue of the refund instrument. The assessee relied on several judicial pronouncements, including Nokia Solutions and Networks India Pvt. Ltd. v. CIT [2018] 96 taxmann.com 246 (Delhi) and Strata Chemicals Ltd. v. CIT [2017] 84 taxmann.com 243 (Guj.), to support its claim that interest should be computed up to the date of actual release of payment. The CIT(A), however, after perusing the records, submissions, and case laws, held that the assessee's contention was not acceptable. The CIT(A) noted that the additional TDS credit of Rs.1,11,297/- was not claimed in the original return filed under section 139(1) but was introduced only in the revised return filed under section 139(5). As per the statutory provision of section 244A(1)(a)(ii), in cases where the return is not filed within the time prescrib....
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....to take remedial action if necessary. 5. The assessee is in appeal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. Before us, the Ld. Counsel for the assessee submitted that the only controversy involved in the present appeal pertains to the period for which interest under section 244A of the Act is to be granted to the assessee. It was contended that the Ld. CIT(A) had erred both in law and on facts in holding that the assessee's case fell under clause (ii) of section 244A(1)(a) merely because a revised return was filed, and consequently restricting the period of interest. The Ld. Counsel submitted that the original return of income was filed within the due date under section 139(1), and the subsequent revised return filed on 25.05.2018 was only to rectify errors or omissions in the original return. Therefore, the act of filing a revised return cannot be treated as an act of delay attributable to the assessee. Reliance was placed on the judgment of the Hon'ble Gujarat High Court in Ajanta Manufacturing Ltd. v. DCIT [2017] 391 ITR 33 (Guj.), wherein it was held that filing a revised return does not disentitle an assessee from claiming in....
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....nn.com 537 (Delhi), where it was categorically held that the interest under section 244A is to be computed up to the date on which the refund amount is released or credited to the assessee's bank account, and not merely up to the date of the refund order. Similar reliance was placed on Small Industries Development Bank of India v. DCIT, ITA No. 3707/Mum/2012 (ITAT Mumbai) and Koninklijke Philips N.V. v. DCIT [2023] 146 taxmann.com 213 (Kolkata - Trib.), both of which affirm that the date of "grant" of refund corresponds to the date of receipt or credit of the refund amount, since only from that date the assessee can utilize the funds. It was thus submitted that in accordance with the statutory provisions and settled judicial precedents, the assessee is entitled to interest under section 244A up to the date of receipt of refund draft or credit in its bank account, as the case may be. In summary, the Ld. Counsel submitted that the interest under section 244A be directed to be recomputed from 1st April 2017 till the date of receipt or credit of refund in the assessee's bank account, and that the order of the Ld. CIT(A) is liable to be set aside as being contrary to law, facts, and pri....
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....he submissions made, we find merit in the contention of the assessee that even assuming that clause (ii) of section 244A(1)(a) applies, such clause would be applicable only to the additional TDS claim of Rs.1,47,029/- made in the revised return of income filed on 25.05.2018, and not to the entire refund amount of Rs.10,93,89,770/-, which includes TDS/TCS credits of Rs.10,92,42,741/- already claimed in the original return of income filed under section 139(1). The act of filing a revised return to correct an omission or error cannot be considered an act of delay attributable to the assessee so as to deny interest from the beginning of the assessment year in respect of the amount already claimed in the original return. This view finds support from the judgment of the Hon'ble Gujarat High Court in Ajanta Manufacturing Ltd. v. DCIT [2017] 391 ITR 33 (Guj), wherein it was held that when the original return has been filed within the prescribed due date, the assessee's entitlement to interest under section 244A cannot be curtailed merely because a revised return is subsequently filed. Accordingly, we direct that interest under section 244A(1)(a)(i) be granted on the amount of Rs.10,92,42,7....