Nirma Limited Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that self-assessment tax paid by the assessee losses its character as self-assessment tax once it got adjusted against the tax liability determined in regular assessment. Thus, denial of grant of interest on refund, where refund is below 10% of tax determined, unjustified.
Facts- The solitary grievance of the assessee in the present appeal relates to refusal of grant of interest on refund of self-assessment tax in terms of provisions of Section 244A of the Act. The orders of the Revenue Authorities reveal that the same was consistently denied, both by the Assessing Officer and the ld. CIT(A), for the reason that the refund of self-assessment tax was found to be less than 10% of the tax determined in regular assessment under Section 143(3) of the Act.
Conclusion- Held that self-assessment tax paid by the assessee losses its character as self-assessment tax once it got adjusted against the tax liability determined in regular assessment. Therefore, this tax paid by the assessee no longer retained its character of self-assessment tax and was not covered under sub-clause (aa) of Section 244A(1) of the Act. We agree with the ld. Counsel for the assessee that after adjustment of the self-assessment tax against the taxes determined to be paid by the assessee on regular assessment, the refund of this tax fell in the category of other taxes under sub-clause (b) of Section 244(A)(1) of the Act and therefore, was not hit by the proviso which applied to only clause (aa) of Section 244A(1) of the Act denying grant of interest on refund where the refund was below 10% of the tax determined to be paid by the assessee.
