Case Law Details
Denis Chem Lab Ltd. Vs ACIT (ITAT Ahmedabad)
With regard to confirming the addition for a sum of Rs.46,960/- being interest u/s.244A on Income Tax Refund for Y.2009-10 is concerned. AO during the course of assessment proceeding on verification of the details generated through Income Tax Department noticed that appellant received Rs.46,960/- on 01/03/20 12 as interest u/s.244A of the Act on refund. AO contended that interest received u/s.244A of the act is taxable under the head “income from other sources”. In this case, though the refund of Rs.46,960/- was shown in the record of Income Tax Department and during the course of assessment proceeding assessee has submitted Affidavit of Managing Director of the Company stating that the company is not aware about the details of the interest in the absence of any working thereof or statement thereof issued by the Department. The said refund was less and there were adjustment relating to earlier year for which the assessee had separately written to the Department.
In our opinion, assessee has received the said information from the Assessing Officer during the course of assessment proceedings which took place during financial year 2014-15. The said amount of interest has therefore been provided in the Financial Year 2015-16, which is also subject to certain rectification on factual grounds as the amount of set off of different years is not correct. They have made separate entry in general voucher dated 01/04/2015 mentioning “Being the jv pass for interest received form Income Tax Dep. for the A.Y. 2009-10. Interest income booked in F.Y. 2015-16”.
In our considered opinion, in such circumstances no addition can be made. In the result, this ground of appeal is in favour of the assessee.
FULL TEXT OF THE ITAT JUDGMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
