Case Law Details
Maruti Suzuki India Ltd. Vs JCIT (OSD) (ITAT Delhi)
The disputes pertain to the sole issue of interest under Section 244A of Income Tax Act, 1961 payable by Revenue to the assessee. Vide impugned appellate order Ld. CIT(A) expressed the view that interest should be given to the assessee under Section 244A of I.T. Act for the full month even if tax is paid by the assessee on the last day of the month. This direction of the Ld. CIT(A) has been disputed on the ground that payments of tax / adjustments were made on the last day of the month. Revenue is of the view that for constituting part of the month, at least one day should have been completed and a few hours of the day do not constitute part of the month. At the time of hearing before us, the representatives of both sides were in agreement that the issue in dispute is covered by the order of Co-ordinate Bench of ITAT, Delhi in assessee’s own case vide order dated 31/08/2020 in ITA No.- 2641/Del/2013, in the case of DCIT vs. Maruti Suzuki India Ltd.
The ld. CIT(A) referred to the analogy provided u/s 234A, Sec. 234B & 234C wherein similar phrase has been used. Based on the phraseology, the ld. CIT(A) held that while interest is charged from the assessee when the date changes to the next day, similarly, the assessee is also eligible for receipt of interest when the date changes. Hence, it was held that the assessee who pays tax on 31.01.2003 at 23.59 hrs. and eligible to refund of tax, would be entitled to interest for the month of January.
Having gone through the specific provisions of the Act, pertaining to computation of interest u/s 244A(1)(a) and Sec. 244A(1)(b) as well as Sec. 234A, Sec. 234B & Sec. 234C, we hereby hold that the rule of collection of interest on the taxes due from the taxpayer would be applicable in the comparable way while paying interest to taxpayer on the refund.
We direct the Assessing Officer to allow interest under Section 244A of I.T. Act to the assessee to the entire month even when payments / adjustments were made on the last day of the month. Accordingly all the three appeals filed by Revenue are dismissed.
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