TaxTMI 
TaxTMI 
2026 (3) TMI 57
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.... 2. BECAUSE, in any case and without prejudice to the grounds here-in-fore, while upholding the action of the Assessing Officer in withdrawing the interest paid to the assessee u/s 244A of the Act, the ld. "CIT(A)" failed to appreciate that the issue of payment of interest on excess amount paid u/s 140A was debatable in nature and it could not have been decided by invoking the provisions of section 154 of the Act as the same did not constitute a mistake apparent from the record. 3. BECAUSE the case law relied by Id. "CIT(A)" is not applicable to the facts of the present case. 4. BECAUSE the order appealed against is contrary to facts, law and principles of natural justice. 5. BECAUSE each ground taken in appeal is mutually exclusive and without prejudice to each other. 6. The "appellant" craves leave, to add, delete or modify any of the grounds before hearing of appeal." 2. The facts of the case are that assessment in this case was completed under section 143(3) of the Income Tax Act on 31.03.2015 at a total income of Rs. 6,96,12,690/-. Later on, from a perusal of the record, the ld. AO noticed that interest under section 244A, amounting ....
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....t in the case of CIT vs. Needle Industries P. Ltd. 233 ITR 370 and its own judgment in the case of Sandvik Asia Ltd vs Commissioner Of Income Tax-I, Pune & Ors (2006) 2 SCC 508. It also quoted from the decisions rendered by the Hon'ble Supreme Court in CIT vs. HEG Limited (2010) 189 taxman 335 (SC) and Universal Cables Limited vs. CIT (2020) 113 taxman.com 353. Accordingly, the assessee submitted that tax paid on self-assessment would fall under section 244A(1)(b) which was the residuary clause covering refunds of amounts not falling under section 244A(1) and therefore, interest is payable on refund on excess paid by way of self-assessment tax. It was also pointed out that the same had been held by the Hon'ble Bombay High Court in the matter Stock Holding Corporation of India Ltd., vs. N.C. Tewari, CIT, Mumbai City-III (2015) 53 taxman.com 106 (Bombay). Additionally, it also prayed that the AO was wrong to disallow interest under section 244A of the Act on the refund of self-assessment tax wherein the issue was a debatable one and that the ld. AO could not have invoked provisions under section 154 because only mistakes apparent from the record could be rectified under that section.....
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....h Court in CIT vs. Vijaya Bank (2011) 338 ITR 489 and the Hon'ble Delhi High Court in CIT vs. Sutlej Industries Limited (2010) 325 ITR 331. The ld. AR argued that in view of all these decisions in favour of the assessee, and no decision of the Hon'ble Supreme Court against the assessee, the assessee was entitled to be paid interest on self-assessment tax paid under section 140A and the AO would not have the power to rectify the earlier orders by recourse to section 154. 6. On the other hand, Sh. R.R.N. Shukla, Addl CIT DR (hereinafter referred to as the DR) pointed out that the ld. CIT(A) had placed reliance upon the decision of the Hon'ble Supreme Court in the case of CIT vs. Gujarat Fluoro Chemicals (supra) and the various CBDT Circulars on the subject. The liability to pay interest only arose if it was spelt out in the Act and section 244A(1)(b) could not be interpreted to hold that it covered self-assessment tax. Accordingly, it was prayed that the ld. AO was justified in rectifying the mistake committed earlier by invoking the provisions of section 154 and therefore, it was submitted that the orders of the lower authorities may be upheld. 7. We have duly considered the f....
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....so to do and has allowed the assessee a reasonable opportunity of being heard. (4)Where an amendment is made under this section, an order shall be passed in writing by the income-tax authority concerned. (5)Subject to the provisions of section 241, where any such amendment has the effect of reducing the assessment, the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] shall make any refund which may be due to such assessee. (6)Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the [Assessing Officer] [Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 156 and the provisions of this Act shall apply accordingly. (7)Save as otherwise provided in section 155 or sub-section (4) of section 186, no amendment under this section shall be made after the expiry of four years [from the end of the financial year in which the order sought to be amended....