Jethiben K. Patel Discretionary Trust Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that additional interest under section 244A(1A) is applicable where there is a delay in granting the refund due to the assessee. Provisions of addition interest are effective prospectively from 01.06.2016.
Facts- The assessee is a discretionary trust engaged in various activities, and the issue under consideration is for the A.Y. 1992-93. The primary issue in this appeal concerns the grant of interest u/s. 244A of the Act, particularly regarding the additional interest claimed by the assessee for the delayed refund.
The original assessment order was passed by the Assessing Officer (AO), followed by rectification orders u/s. 154 of the Act. The assessee, dissatisfied with the amount of interest granted on the refund, filed a rectification application on 21.08.2017, requesting additional compensation for the delayed period in issuing the interest on the refund. The AO rejected this application, citing that there was no provision under the Act for granting such additional compensation. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- The coordinate bench in the case of Tata Sons Pvt. Ltd. has held that additional interest under section 244A(1A) is applicable where there is a delay in granting the refund due to the assessee. Section 244A(1A) applies prospectively from 01.06.2016 and is intended to compensate the assessee for delays in refund post this date.
