Suzlon Gujarat Wind Park Ltd. Vs DCIT (ITAT Ahmedabad)
Revised Return No Bar to Full 244A Interest Entitlement – Refund Interest to Run from 1 April 2017 -up to Date of Refund Draft Issue
Assessee, Suzlon Gujarat Wind Park Ltd., filed its return of income for AY 2017-18 on 13.10.2017 u/s.139(1) claiming refund of ₹ 10.92 crore (approx.) on account of TDS/TCS. A revised return under s.139(5) was filed on 25.05.2018, claiming an additional TDS credit of ₹ 1.47 lakh, out of which ₹ 1.11 lakh was allowed. Refunds were issued on 01.10.2018 & 18.11.2020 with total interest of ₹ 87.57 lakh u/s 244A.
The grievance: Short grant of interest u/s 244A amounting to ₹ 16.48 lakh, contending that interest should be computed from 01.04.2017 till the date of actual receipt of refund. AO restricted interest from 25.05.2018 (date of revised return) up to the date of the refund draft, applying s. 244A(1)(a)(ii), holding that delay was attributable to the Assessee.
CIT(A) rejected the claim, observing:
- Additional TDS claim arose only in the revised return, hence interest was correctly restricted from 25.05.2018.
- “Date of grant of refund” = date of issue of demand draft (25.09.2018); Revenue cannot compute interest till uncertain future date of presentation/credit.
- Refund was despatched promptly (28.09.2018); no delay proved.
- Relying on Nokia Solutions & Networks India Pvt. Ltd. and Strata Chemicals Ltd., the CIT(A) held those cases distinguishable.
- Found that interest for 16 months was already granted though only 5 months were admissible; thus no shortfall.
- He even directed AO to verify possible excess interest granted u/s 244A.
Arguments before the Tribunal
