The Commissioner of Income Tax - IV V. Nagarjuna Finance Ltd.

ITTA/262/2012

AI Insights

The case involves the Commissioner of Income Tax - IV, Hyderabad as the appellant and Nagarjuna Finance Ltd. as the respondent. The dispute centered on the refund of taxes and the entitlement to interest on such refunds. The respondent had initially filed a return showing NIL income after adjusting unabsorbed depreciation/losses from previous years and claimed a refund based on TDS and advance tax. The Income Tax Department processed this return but withheld the refund after assessment adjustments. The CIT (Appeals) and subsequently the Tribunal ruled in favor of the respondent, granting interest on the refunded amount related to advance tax and TDS. The Revenue's appeal to the High Court was dismissed, affirming the lower authorities' decisions.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 744032 (HC-HYDERABAD)
• Appeal Type: Others
• Pronouncement Date: 10-09-2012
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Keywords: Advance tax; Assessment Year; Income Tax; MAT credit; Refund; TDS; Unabsorbed depreciation
• Section: 143(3); 154; 143(1)(a); 260-A; 244(A)(1)

Judgement Text

"THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE M.S.RAMACHANDRA RAO I.T.T.A.No.262 of 2012 Date: 10.09.2012 Between: The Commissioner of Income Tax – IV, Hyderabad … Appellant AND Nagarjuna Finance Ltd., 1-2-599/600, 103, Reliance Mansion, Lower Tank Bund Road, Hyderabad … Respondent THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE M.S.RAMACHANDRA RAO I.T.T.A.No.262 of 2012 ORDER (Per the Hon’ble Sri Justice Goda Raghuram): This appeal by the Revenue under Section 260-A of the Income Tax Act, 1961 (for short ‘the Act’) is directed against the order of the Income Tax Appellate Tribunal, Hyderabad ‘A’ Bench, dated 30.01.2009 in I.T.A.No.68/H/2004 pertaining to the Assessment Year 1998-99. The brief facts leading to present appeal may be noticed. The respondent (assessee) filed its return of the income on 30.11.1998 showing NIL income after adjusting unabsorbed depreciation/loss for the Assessment Years 1996-97 and 1997-98 amounting to Rs.27,81,37,991/-. The return was revised on 29.01.2001 showing current year’s income at Rs.6,59,08,290/- which was adjusted against unabsorbed depreciation/loss for the Assessment Year 1997-98 and the net taxable income was shown as NIL. A refund of Rs.2,22,01,591/- was claimed on account of TDS of Rs.1,69,01,591/- and advance tax of Rs.53,00,000/-. The return was processed under Section 143(1)(a) of the Act on 30.09.1999. Credit for TDS of Rs.1,29,89,691/- and advance tax of Rs.25,00,000/-, in all Rs.1,54,89,691/- was allowed and the amount refundable to the assessee including interest was calculated at Rs.1,82,77,819/-. The refund was however withheld after obtaining approval from the Commissioner of Income Tax (CIT). Thereafter, regular assessment under Section 143(3) of the Act was completed on 15.02.2001 determining the total income at Rs.34,12,48,010/- on which the net income tax payable was worked out at Rs.16,57,95,368/-. Thereafter, the assessment was revised under Section 154 of the Act on 04.06.2001 and the total income was computed at Rs.28,34,11,990/- and the net tax payable was determined at Rs.9,82,73,535/-. Pursuant to the order of the CIT (Appeals) dated 25.02.2002, a consequent order was passed on 15.04.2002 wherein the revised total income was computed at Rs.77,93,424/- and the refund payable to the assessee was specified as Rs.4,80,28,969/-. On 01.04.2003 the assessee claimed credit for MAT for the Assessment Year 1997-98 at Rs.88,74,800/-. On this application, the Assessing Officer passed an order under Section 154 of the Act on 29.07.2003 allowing MAT credit to the extent of Rs.27,27,698/- and refunded the tax of Rs.27,27,698/- which was demanded and collected from the assessee, however without granting payment of interest on the quantum of refunded tax. Aggrieved, the assessee preferred an appeal to the CIT (Appeals). This appeal was allowed by the order dated 27.11.2003. Before the CIT (Appeals), the Revenue specifically contended that in effect the assessee was claiming interest on the MAT credit. Rejecting this contention, the CIT (Appeals) held that by the consequent order dated 15.04.2002, the Assessing Officer had issued refund for the tax already collected and what the assessee was claiming was not interest on MAT paid for the preceding assessment year but interest on refund to the extent it is attributable to advance tax and TDS. Allowing the appeal of the assessee, the CIT (Appeals) held that the assessee was entitled to interest under Section 244 (A)(1) of the Act on the refund of Rs.27,27,698/- granted vide the rectification order dated 29.07.2003. The Revenue preferred an appeal to the Tribunal which was rejected by the order impugned. The Tribunal concurred with the finding and reasoning of the CIT (Appeals) and held that what was claimed by the assessee was only interest in respect of the advance tax and TDS paid by it and not on MAT credit. We find no question of law let alone a substantial question of law falling for consideration in this appeal preferred against concurrent findings of fact. Accordingly the appeal is dismissed at the stage of admission. No costs however. JUSTICE GODA RAGHURAM JUSTICE M.S.RAMACHANDRA RAO Date: 10.09.2012 va THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE M.S.RAMACHANDRA RAO I.T.T.A.No.262 of 2012 (order of the Bench delivered by the Hon’ble Sri Justice Goda Raghuram) Date: 10.09.2012 va "