ITC Infotech India Limited Vs DCIT (ITAT Kolkata)
The appeal before the Income Tax Appellate Tribunal (ITAT), Kolkata Bench, arose from the order dated 03.10.2025 passed by the Commissioner of Income Tax (Appeals)-Addl./JCIT(A), Kochi, for Assessment Year 2014-15. The sole issue involved in the appeal was whether the Commissioner (Appeals) erred in not issuing a specific direction to the Assessing Officer to grant additional interest under Section 244A(1A) of the Income-tax Act.
The assessment under Section 143(3) had originally been completed by an order dated 23.01.2018. According to the assessment order, the amount refundable to the assessee exceeded 10% of the net tax liability. Consequently, the assessee became entitled to interest under Section 244A(1) of the Act and received the same.
Subsequently, an appellate order was passed in favour of the assessee. However, while giving effect to that appellate order, the Assessing Officer issued the appeal effect order only on 02.02.2023. The assessee contended that there had been a delay of approximately four and a half years in granting the appeal effect, beyond the timeline prescribed under Section 153(5) of the Act. Therefore, it claimed entitlement to additional interest at the rate of 3% per annum under Section 244A(1A).
The assessee submitted before the Commissioner (Appeals) that while passing the appeal effect order dated 02.02.2023, the Assessing Officer had failed to grant additional interest under Section 244A(1A). The assessee requested the appellate authority to direct the Assessing Officer to allow such interest. However, the Commissioner (Appeals) merely directed the Assessing Officer to verify the claim of interest, without issuing any specific direction for granting the same. Aggrieved by this limited direction, the assessee preferred an appeal before the Tribunal.
