TaxTMI 
TaxTMI 
2026 (8) TMI 666
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....cer giving effect to the appellate order of the Ld. CIT(A) for Assessment Year 2009-10. The Revenue has raised four grounds relating to (i) relief granted in respect of write back of provision for employee benefits, (ii) deletion of interest charged under section 234D, (iii) computation of interest under section 244A and (iv) grant of interest under section 244A on excess self-assessment tax. 3. Briefly stated, the original assessment for the year under consideration was completed under section 143(3) of the Act. Pursuant to the appellate order passed by the Ld. CIT(A), the Assessing Officer passed an order giving effect thereto. Aggrieved by the relief granted by the Ld. CIT(A) while adjudicating the consequential issues arising from the order giving effect, the Revenue is in appeal before us raising following grounds: "(1) Whether the facts and in the circumstances of the case and in law, the CIT(A) was correct in allowing the deduction on account of provision of written-back or provision for other employees benefits comprising of leave travel & home travel, sick leave and casual leave amounting to Rs. 15.47 Crore without appreciating the fact that the whole disallowa....
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....arlier year as it will amount to double deduction. 6. Per contra, the learned Authorised Representative submitted that the provision corresponding to the impugned write back had been disallowed while computing income for Assessment Year 2008-09. Therefore, unless the deduction is finally allowed in Assessment Year 2008-09, the write back cannot again be brought to tax as it would amount to taxing the same amount twice. He further submitted that subsequent to the impugned order, the Tribunal in assessee's own case for Assessment Year 2008-09 has allowed the claim relating to the said provision and the consequential order giving effect is yet to attain finality. Therefore, according to him, the taxability of the write back has to follow the ultimate tax treatment accorded to the provision in Assessment Year 2008-09. 7. We have heard the rival submissions and perused the material available on record. We find merit in the contention of the learned Authorised Representative that the present issue cannot be decided independently of the proceedings for Assessment Year 2008-09. It is well settled that where an expenditure has been allowed as deduction in an earlier year, the subs....
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....ltimately no excess demand has been raised in regular assessment after the ITAT order, interest under section 234D shall not be chargeable. Ground No.2 is accordingly allowed for statistical purposes. 13. Ground No.3 & 4 relate to the direction of the Ld. CIT(A) that while computing interest under section 244A, the refunds granted earlier should first be adjusted towards the interest component and thereafter towards the principal tax component. 14. The learned Departmental Representative relied upon the assessment order and submitted that the Assessing Officer has computed the interest in accordance with the departmental practice and, therefore, the Ld. CIT(A) was not justified in directing a different mode of adjustment. 15. The learned Authorised Representative, on the other hand, submitted that the issue is squarely covered in favour of the assessee by the decision of the Hon'ble Delhi High Court in India Trade Promotion Organisation vs. CIT [(2013) 361 ITR 646 (Del.)], wherein it has been held that while adjusting the refund against the outstanding demand, the amount is first required to be appropriated towards the interest component and only thereafter towards the....
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.... erred in directing the Assessing Officer to re-compute and levy interest under section 234D. He therefore erred in not directing the Assessing Officer to not levy interest under section 234D. 1.2. The learned CIT(A) erred in not appreciating that interest under section 234D can be levied only for the period from the date of grant of refund to the date of regular assessment. 1.3. The learned CIT(A) erred in not appreciating that in case of the aforesaid assessment year the date of grant of refund is April 2013 and the date of regular assessment is March 2013. Hence, there is no question of levy of interest under section 234D. 1.4. The learned CIT(A) erred in holding that the order dated 27 March 2018 giving effect to the CIT(A) order is to be treated as an extension of the original order under section 143(3) and hence needs to be treated as regular assessment. 2. Short grant of interest under section 244A 2.1. The learned CIT(A) erred in upholding the action of the Assessing Officer in granting short interest under section 244A. 2.2. The learned CIT(A) erred in not directing the Assessing Officer to adjust the amount of refund g....
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....itted that after considering the entire sequence of events, the Tribunal held that though the refund was actually received by the assessee on 28.03.2013, interest under section 234D, if leviable, could be charged only for one month. It was, therefore, submitted that the Assessing Officer was not justified in computing the interest till the date of the order passed while giving effect to the appellate order and the issue being squarely covered, the interest deserves to be restricted to one month. 24. The learned Departmental Representative relied upon the order of the Ld. CIT(A). 25. We have heard the rival submissions and perused the material available on record. We find that the controversy involved in the present ground is no longer res integra. The Coordinate Bench of the Tribunal, while deciding the issue in appeal relating to section 154 on the same issue, after considering the chronology reproduced hereinabove, held that for the purpose of section 234D, interest could be levied only for one month. The operative findings of the Coordinate Bench read as under:- "7. We heard the rival submissions and considered the documents available in the record. In case of int....