GMR Kalindee TPL (JV), Hyderabad V. Income Tax Officer, Ward-6(1), Hyderabad

ITA 1048/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0629 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 09-06-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 25-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: JAGDISH JOSHI
• Keywords: TDS; Set aside
• Section: 143(3); 244A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 1 04 8 /H/20 19 ASSESSMENT YEAR: 2 0 1 6 - 17 GMR KALINDEE TPL (JV), HYDERABAD. PAN A A C AG 0485C VS. INCOME - TAX OFFICER, WARD 6 ( 1 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI JAGDISH JOSHI REVENUE BY: S HRI ROHIT MUJUMDAR DATE OF HEARING: 0 9 /0 6 /2021 DATE OF PRONOUNCEMENT: 15 /0 7 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) 6 , HYDERABAD S ORDER DATED 2 2 / 0 5 /201 9 FOR AY 20 1 6 - 1 7 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME - TAX ACT, 1961; IN SHORT THE ACT ON THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO ALLOW THE INTEREST U/S 244A I TA NO. 1048 /HYD /20 19 GMR KALINDEE TPL (JV) , HYD. : - 2 - : FROM MAY 10, 2018 AS AGAINST INTEREST U/S 244A ALLOWABLE ON TAX REFUND ARISING OUT OF TDS FROM APRIL 1, 2015. 2. THE CIT(A) FURTHER ERRED IN MAKING CERTAIN IRRELEVANT AND INCORRECT STATEMENT THAT THE ASSESSEE IS ENTITLED TO CLAIM INTEREST ON REFUND IN TERMS OF SUB - SECTION (1) OF SECTION 244A OF THE ACT READ WI TH SUB - SECTION (4) THEREOF W.E.F. DATE OF ORDER OF THE CIT(A) - 6 PASSED IN THE ASSESSEE'S OWN CASE FOR THE AY 2015 - 16 I.E. 10.05.2018 TILL THE DATE OF GRANT OF REFUND. 3. THE CIT(A) FAILED TO APPRECIATE AND OUGHT TO HAVE HELD THAT THE APPELLANT IS ENTITLE D TO INTEREST U/S 244A ON THE TAX REFUND AMOUNT WHICH IS ARISING OUT OF TDS AMOUNT FROM APRIL 1, 2015 UPTO THE DATE OF ACTUAL GRANT OF TAX REFUND AMOUNT IN ACCORDANCE WITH THE PROVISIONS OF SECTION 244A AND THE SETTLED LEGAL POSITION ON THIS ISSUE. 4. TH E APPELLANT THEREFORE PRAYS THAT THE ASSESSING OFFICER BE DIRECTED TO ALLOW INTEREST ON THE TAX REFUND AMOUNT FROM APRIL 15T 2015 TILL THE DATE OF ACTUAL GRANT OF TAX REFUND AMOUNT IN ACCORDANCE WITH THE PROVISIONS OF SECTION 244A OF THE INCOME TAX ACT, 19 61 AND THE SETTLED LEGAL POSITION ON THIS ISSUE. GROUND II: THE APPELLANT CRAVES LEAVE TO ADD, ALTER AND/OR AMEND ALL OR ANY OF THE FOREGOING GROUNDS OF APPEAL. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME FOR THE AY 2 016 - 17 ELECTRONICALLY IN ITR 1 ON 29/11/2016 DECLARING NIL INCOME. THE AO COMPLETED THE ASSESSMENT U/S 143(3) OF THE ACT AND COMPUTED THE TOTAL INCOME OF THE ASSESSEE THAT THE REFUNDABLE AMOUNT TO THE ASSESSEE IS RS. 9,76,551/ - WITH A CLAUSE THAT NO INT EREST I TA NO. 1048 /HYD /20 19 GMR KALINDEE TPL (JV) , HYD. : - 3 - : U/S 244A IS ALLOWED AS THE DELAY IN CLAIMING REFUND IS ATTRIBUTABLE TO THE ASSESSEE ONLY. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND THE CIT(A) HELD THAT THE ASSESSEE IS ENTITLED TO CLAIM INTEREST ON REFUND IN TERMS OF SUB - SECTION (1) OF SECTION 244A OF THE ACT READ WITH SUB - SECTION (4) THEREOF W.E.F. DATE OF ORDER OF CIT(A) 6 PASSED IN THE ASSESSEES OWN CASE FOR THE AY 2015 - 16 I.E. 10/05/2018 TILL THE DATE OF GRANT OF REFUND. 4. STILL AGGRIEVED, THE ASSESSEE IS IN APP EAL BEFORE THE ITAT. 5. BEFORE US, THE LD. AR OF THE ASSESSEE SUBMITTED THAT IT IS A SETTLE LEGAL POSITION THAT THE ASSESSEE IS ENTITLED TO INTEREST U/S 244A ON THE TAX REFUND AMOUNT WHICH IS ARISING OUT OF TDS AMOUNT FROM APRIL, 2015 UP TO THE DATE OF AC TUAL GRANT OF TAX REFUND AMOUNT IN ACCORDANCE WITH THE PROVISIONS OF SECTION 244A. 6. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDER OF CIT(A). 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD AS WELL AS GONE THROUGH TH E ORDERS OF REVENUE AUTHORITIES. T HE FINANCE ACT, 2016 HAS I TA NO. 1048 /HYD /20 19 GMR KALINDEE TPL (JV) , HYD. : - 4 - : EXPRESSLY PROVIDED FOR PAYMENT OF INTEREST ON INCOME - TAX REFUND ARISING FROM THE EXCESS PAYMENT OF SELF - ASSESSMENT TAX U/S 140A. IN THE INTEREST OF FAIRNESS AND EQUITY, SECTION 244A IS AMENDED TO PROVIDE THAT AN ASSESSEE SHALL BE E LIGIBLE TO INTEREST ON REFUND OF SELF - ASSESSMENT TAX FOR THE PERIOD BEGINNING FROM THE DATE OF PAYMENT OF TAX OR FILING OF RETURN, WHICHEVER IS LATER, TO THE DATE ON WHICH THE REFUND IS GRANTED. FOR THE PURPOSE OF DETERMINING THE ORDER OF ADJUSTMENT OF PAY MENTS RECEIVED AGAINST THE TAXES DUE, THE PREPAID TAXES I.E. THE TDS, TCS AND ADVANCE TAX SHALL BE ADJUSTED FIRST. THEREFORE, WE SET ASIDE THE ORDER OF CIT(A) AND REMIT THE ISSUE TO THE FILE OF THE AO WITH A DIRECTION TO RE COMPUTE THE INTEREST U/S 244A AS PER ABOVE DIRECTIONS OF FINANCE ACT, 2016. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 15 TH JU LY , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 15 TH JU LY , 20 2 1 . K V I TA NO. 1048 /HYD /20 19 GMR KALINDEE TPL (JV) , HYD. : - 5 - : C OPY TO : 1 GMR KALINDEE TPL (JV), NO. 6 - 3 - 866/1/G2, 1 ST FLOOR, GREENLANDS, BEGUMPT, HYDERABAD 500 016. 2 IT O , WARD 6 ( 1 ) , HYDERABAD. 3 C I T(A) 6 , GUNTUR 4 PR. CIT - 6 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.