J & K Bank Limited Vs JCIT (Jammu And Kashmir High Court)
The Jammu and Kashmir High Court adjudicated an appeal filed by J&K Bank Limited under Section 260-A of the Income Tax Act, 1961, against an order dated 10 July 2009 passed by the Income Tax Appellate Tribunal (ITAT), Amritsar, in relation to assessment year 1993–94. The appeal arose from the ITAT’s affirmation of the Commissioner of Income Tax (Appeals) [CIT(A)], Bathinda’s order dated 24 February 2009, which had rejected the Bank’s claim regarding entitlement to interest on refund for a certain period, based on alleged defects in TDS certificates.
The High Court admitted the appeal on two questions of law:
(i) Whether the appellant was entitled to interest from January 1994 to November 1995 on the Income Tax Deduction Certificates; and
(ii) Whether such interest could be denied on the ground that the TDS certificates were defective, particularly when they had already been accepted for earlier periods (April 1993 to December 1993).
Upon hearing both sides and examining the material on record, the Court observed that the first question did not constitute a substantial question of law. It explained that interest on refunds is governed by Section 244A of the Act, which provides that if any delay in refund is attributable to the assessee, wholly or partly, the corresponding period must be excluded from the interest calculation. The provision further states that when such a question arises, the decision of the Chief Commissioner or Commissioner concerned is final. Thus, the Court held that determining whether delay in granting the refund was attributable to the assessee is a matter of fact, to be decided on the evidence before the authority, and not a question of law.
