Den Discovery Digital Networks Private Limited Vs ACIT (ITAT Pune)
The appeal by Den Discovery Digital Networks Pvt. Ltd. against the CIT(A)/NFAC order for AY 2014-15 concerns the denial of interest under Section 244A of the Income Tax Act, 1961, on advance tax inadvertently unclaimed in the original income tax return. The assessee, engaged in cable television distribution, filed its return declaring income of ₹2.49 crore. However, it inadvertently omitted claiming credit of advance tax of ₹20 lakh. The assessment under Section 143(3) completed in 2017 recorded the declared income and issued no demand. Upon filing a rectification application under Section 154, the AO granted the credit along with interest of ₹4.70 lakh under Section 244A and issued a refund. Later, the AO issued a show-cause notice proposing withdrawal of this interest citing Circular No. 9/2015 and levying interest under Section 234D for delayed refund, arguing that the delay was attributable to the assessee for not claiming the credit in the return. The assessee contended that interest under Section 244A is payable even if advance tax is not claimed in the return, and that a debatable point of law cannot constitute a mistake apparent from the record under Section 154. It also cited CBDT Circular No. 14(XL35) and the availability of Form 26AS reflecting the advance tax, asserting that the AO had sufficient information to grant the credit.
