Self-assessment tax paid u/s 140A (of Income Tax Act, 1961) comes within the purview of s 244A(1)(b)
Self-assessment tax paid u/s 140A (of Income Tax Act, 1961) comes within the purview of s 244A(1)(b)
Assessee company filed its return of income, and claimed refund of Rs 95,30,423 arising out of excess tax paid by way of TDS advance tax and self assessment tax. AO granted refund. Assessee sought rectification u/s 154 (of Income Tax Act, 1961) of AO’s order. AO rejected it. CIT(A) directed AO to allow interest. ITAT held that self-assessment tax paid u/s 140A (of Income Tax Act, 1961), comes within the purview of s 244A(1)(b), hence, assessee is entitled to receive interest .-501284
1. Assessee company filed its return of income for the assessment year under consideration, declaring income of Rs 29,86,750, under normal provisions and book profit of Rs 3,37,50,010 under section 115JA (of Income Tax Act, 1961). In the computation of income accompanying the return of income, assessee had claimed refund of Rs 95,30,423 arising out of excess tax paid by way of TDS advance tax and self assessment tax. The Assessing Officer, vide order dated 27th April 2010, granted refund to the assessee. However, assessee after receiving the order granting refund having found that interest granted under section 244A (of Income Tax Act, 1961) has not been correctly computed moved an application under section 154 (of Income Tax Act, 1961) before the Assessing Officer seeking rectification of the order. In the said rectification application, assessee put forward his claim of interest under section 244A (of Income Tax Act, 1961) on the self-assessment tax paid. The Assessing Officer, however, in order dated 11th January 2012, rejected assessee's application under section 154 (of Income Tax Act, 1961), by holding that interest under section 244A (of Income Tax Act, 1961), is not payable on self-assessment tax.
2. CIT(A) directed AO to allow interest under section 244A (of Income Tax Act, 1961) from the date of payment of tax under section 140A (of Income Tax Act, 1961) till the date of grant of refund.
3. On appeal, the ITAT held as under:
The issue in dispute has been decided in favour of the assessee by the Hon'ble Jurisdictional High Court in Stock Holding Corporation India Ltd. v/s CIT, [2015\ 53 Taxmann.com 106 (Bom.). A copy of judgment was also placed before the Bench. On a perusal of the aforesaid judgment of the Hon'ble Jurisdictional High Court, it is observed while deciding identical nature of dispute of grant of interest under section 244A (of Income Tax Act, 1961), on refund arising out of payment of self- assessment tax under section 140A (of Income Tax Act, 1961), the High Court in very clear terms held that self-assessment tax paid under section 140A (of Income Tax Act, 1961), comes within the purview of section 244A(1)(b) (of Income Tax Act, 1961), hence, assessee is entitled to receive interest under section 244A (of Income Tax Act, 1961) on the refund arising M/s. Tifco Holdings Ltd. out of self-assessment tax. Learned Departmental Representative has not been able to bring to our notice any contrary decision of Hon'ble Jurisdictional High Court or Hon'ble Supreme Court on the issue. In view of the aforesaid binding decision of the Hon'ble Jurisdictional High Court, we do not find any infirmity in the order of the learned Commissioner (Appeals) in allowing assessee's claim of interest under section 244A (of Income Tax Act, 1961). Accordingly, we uphold the order of the learned Commissioner (Appeals) by dismissing the ground raised by the Department.
4. In the result, appeal stands dismissed.”
Case Reference - Asstt. Commissioner of Income Tax, Circle-1(3) v/s M/s. Tifco Holdings Ltd.
IN THE INCOME TAX APPELLATE TRIBUNAL
"E" BENCH, MUMBAI
BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND
SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER
ITA no.5224/Mum./2014
(Assessment Year : 2000-01)
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