Mohanbhai Madhavjibhai Bharad Vs PCIT (Gujarat High Court)
Gujarat High Court held that assessee is not at fault for delay caused in filing the return of income claiming the refund of TDS as no tax was payable by the petitioners on the amount of interest under section 194LA of the Act, 1961. Accordingly, interest u/s. 244A of the Income Tax Act duly admissible.
Facts-The ag ricultural land of the petitioner was acquired by the State of Gujarat under “Survo Scheme” on 29.11.2001. Issue involved herein is that whether department is liable to pay interest under section 244A of the Income Tax Act on refund claim filed for wrong deduction of TDS when return of income claiming refund was filed belatedly.
By these petitions under Articles 226 and 227 of the Constitution of India, the petitioners have challenged the order passed by the Principal Commissioner of Income Tax, Rajkot to the extent of not granting interest on the claim of the refund though the delay was condoned as per the provisions of section 119(2)(b) of the Income Tax Act, 1961.
Conclusion- The Delhi High Court in the case of Court On its Own Motion v. Commissioner of Income Tax has held that in no case interest u/s 244A of the Act be denied to the assessee where the assessee is not at fault.
