Gloster Limited( Formerly Known asknown as Gloster Jute Mills Limited), Kolkata V. A.C.I.T. Cir - 1,Kol, Kolkata

ITA 385/KOL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4950 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 09-02-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 26-02-2013
• Court: TRIBUNAL
• Department Lawyers: SRIDHAR BHATTACHARYA
• Assessee Lawyers: HARISH AGARWAL ACA
• Section: 244A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: K OLKATA [BEFORE SHRI MAHAVIR SINGH, JM & SHRI M. BALAGANES H, AM] I.T.A NO.385/KOL/2013 ASSESSMENT YEAR: 2010-11 GLOSTER LIMITED (FORMERLY KNOWN AS VS. ASSISTAN T COMMISSIONER OF INCOME-TAX, GLOSTER JUTE MILLS LIMITED) CPC, CIRCLE-1, KOLK ATA. (PAN: AAACG9800B) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 09.02.2016 DATE OF PRONOUNCEMENT: 02.03.2016 FOR THE APPELLANT: SHRI HARISH AGARWAL, ACA FOR THE RESPONDENT: SHRI SRIDHAR BHATTACHARYA, J CIT ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XXIV, KOLKATA VIDE APPEAL NO. 1143/CIT(A)-XXIV/C-1/12-13 DATED 24.12.2012. ASSES SMENT/INTIMATION WAS FRAMED BY ACIT, CPC U/S. 143(1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTE R REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 201 0- 11 VIDE HIS ORDER DATED 15.03.2011. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) IN UPHOLDING THE ACTION O F AO IN NOT GRANTING INTEREST U/S. 244A OF THE ACT ON REFUND ARISING ON ACCOUNT OF PAYMENT OF SELF ASSESSMENT TAX. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUG H FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE HAS PAID SELF AS SESSMENT TAX OF RS. 1 CR. ON 25.09.2009 FOR AY 201 0-11. THE AO WHILE ISSUING INTIMATION U/S. 143(1) OF THE ACT HAS NOT GRANTED INTEREST U/S. 244A OF THE ACT O N REFUND ARISING OUT OF PAYMENT OF SELF ASSESSMENT TA X FROM THE DATE OF PAYMENT TILL THE DATE OF ADJUSTM ENT OF REFUND. THE CIT(A) ALSO CONFIRMED THE ACTION OF AO. BEFORE US, LD. COUNSEL FOR THE ASSESSEE STATE D THE FACT THAT THE ORIGINAL RETURN OF INCOME WAS PRO CESSED VIDE INTIMATION U/S. 143(1) OF THE ACT DATED 15.03.2011 WHEREIN A REFUND OF RS.54,25,711/- WAS D ETERMINED BUT NO INTEREST U/S. 244A OF THE ACT WAS GRANTED ON THIS REFUND ARISING OUT OF PAYMENT OF SE LF ASSESSMENT TAX FROM THE DATE OF PAYMENT TILL THE DATE OF ADJUSTMENT OF REFUND. ACCORDING TO LD. COU NSEL FOR THE ASSESSEE, THIS ISSUE IS COVERED BY THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF CIT VS. BIRLA CORPORATION LTD. ITA NO. 52 6 OF 2004 DATED 02.02.2016, WHEREIN IT IS HELD THAT T HE MANDATE OF SECTION 244A(1)(B) OF THE ACT THAT INTEREST IS PAYABLE ON REFUND ARISING FROM EXCESS P AYMENT OF SELF ASSESSMENT TAX FROM THE DATE OF PAYMENT OF TAX TO THE DATE OF GRANT OF REFUND ACTUA LLY. LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTI ON TO RELEVANT PARA WHICH READS AS UNDER: SECTION 244A DOES NOT MANDATE THAT INTEREST CANNO T BE ALLOWED ON SELF ASSESSMENT TAX PAID U/S. 140A. AS DISCUSSED EARLIER IT CANNOT BE SAID THAT I NTEREST U/S. 244A CAN BE ALLOWED ONLY IN CASES WHERE EXCESS PAYMENTS OF TAX IS MADE CONSEQUENT TO A NOTICE OF DEMAND U/S. 156. THE LANGUAGE OF THE ACT IS CLEAR AND THERE IS NO AMBIGUITY IN IT. HENCE THE ASSESSEE IS CLEARLY ENTITLED TO CLAIM INTEREST U/S. 244A ON REFUND OF EXCESS SELF ASSESSM ENT TAX. 2 ITA NO.385/KOL/2013 GLOSTER LIMITED AY 2010-11 2 4. ON THE OTHER HAND, LD. SR. DR COULD NOT CONTROVE RT THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT. WE FIND FROM THE FACTS OF THE CASE THAT THE RE IS A REFUND OF RS.54,25,711/- ARISING OUT OF SEL F ASSESSMENT TAX BUT NO INTEREST WAS GRANTED U/S. 244 A OF THE ACT ON THIS REFUND ARISING OUT OF SELF ASSESSMENT TAX. WE FIND THAT THIS ISSUE IS SQUAREL Y COVERED BY THE DECISION OF HONBLE CALCUTTA HIGH COURT IN THE CASE OF BIRLA CORPORATION LTD., SUPRA. HENCE, THE ASSESSEE IS ENTITLED FOR INTEREST ON TH IS REFUND. ACCORDINGLY, WE DIRECT THE AO TO RECOMPUTE THE INTEREST AND ALLOW THE SAME IN TERM OF THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF BIRLA CORPORATION LTD., SUPRA. APPEAL OF ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 02.03.2016. SD/- SD/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 ND MARCH, 2016 JD. SR. P.S COPY OF THE ORDER FORWARDED TO: 1. APPELLANT GLOSTER LIMITED (FORMERLY KNOWN AS GLOS TER JUTE MILLS LIMITED) 21, STRAND ROAD, KOLKATA-700 001. 2. RESPONDENT ACIT, CPC, CIR-1, KOLKATA. 3. CIT(A), , KOLKATA 4. CIT, , KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .