Tata Steel Limited Vs ACIT (ITAT Mumbai)
The issue under consideration is whether the assessee is entitled for interest u/s.244 of the Act from the date of payment of taxes till the date such taxes were actually adjusted against the demand of some other assessment year?
ITAT states that while giving effect to the order of the Tribunal order in the proceedings passed by the ld. AO, the ld. AO had finally determined the refund which was ultimately adjusted against the demand of A.Y.2009-10. Hence, this is a case of assessee seeking interest on the taxes actually paid by him which ultimately resulted in refund. This is not a case of assessee claiming interest on interest. Hence, ITAT direct the ld. AO to grant interest u/s.244 of the Act from the date of payment of taxes till the date such taxes were actually adjusted against the demand of some other assessment year.
Accordingly, the appeal filed by the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal in ITA No.6104/Mum/2018 for A.Y.1985-86 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-6, Mumbai in appeal No. CIT(A)-6/IT-54/2017-18 dated 29/08/2018 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) r.w.s 254 of the Income Tax Act, 1961 (hereinafter referred to as Act) by the Asst. Commissioner of Income Tax 2(3), Mumbai (hereinafter referred to as ld. AO).
2. The only issue to be decided in this appeal is as to whether the assessee is entitled for interest u/s. 244(1A) of the Act on the refund of Rs.23,91,54,333/- for the period 29/10/2013 to 21/11/2017 in the facts and circumstances of the case.
3. We have heard rival submissions and perused the materials available on record. To adjudicate the aforesaid issue, the following list of dates and events would be relevant:-
