Income Tax Appellate Tribunal - Kolkata
Hindustan Gum & Chemicals Ltd., Kolkata vs Department Of Income Tax on 10 February, 2012
आयकर अपीलीय अधीकरण, Ûयायपीठ - " ǒब" कोलकाता,
IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH: KOLKATA
(सम¢)Before ौी महावीर िसंह, Ûयायीक सदःय एवं/and ौी,
ौी सी.डȣ.राव लेखा सदःय)
[Before Sri Mahavir Singh, JM & Shri C. D. Rao, AM]
आयकर अपील संÉया / I.T.A Nos. 511-512/Kol/2011
िनधॉरण वषॅ/Assessment Years: 2001-02 & 2002-03
Deputy Commissioner of Income-tax, Vs. M/s. Hindustan Gum & Chemicals Ltd.
Circle-12, Kolkata. (PAN:AAACH 7214 E)
(अपीलाथȸ/Appellant) (ू×यथȸ/Respondent)
Date of hearing: 10.02.2012
Date of pronouncement: 10.02.2012
For the Appellant: Shri Debasis Roy
For the Respondent: Shri S. Bhowmick
आदे श/ORDER
Per Bench:
These appeals by revenue are arising out of separate orders of CIT(A)-XXXVI, Kolkata in Appeal Nos.63 & 62/CIT(A)-XXXVI/12(1)/Kol/07-08 vide dated 03.01.2011 against rectification order passed u/s.154 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") vide separate orders of ITO, Wd-12(4), Kolkata dated 31.07.2007.
2. The only common issue in these two appeals of Revenue is against order of CIT(A) in allowing interest on fund u/s 244A of the Act. For this, revenue has raised the following common ground:
"1. On the facts and in the circumstances of the case, Ld. CIT(A) has erred in allowing interest on fund u/s. 244A of the I. T. Act up to the date of issuance of refund without appreciating the facts that the delay was due to verification of defective TDS Certificates."
3. We have heard rival contentions and gone through facts and circumstances of the case. The relevant assessment years involved are 2001-02 and 2002-03 and assessee-company filed its return of income on 29.10.2001 and 31.10.2002 for A.Yrs 2001-02 and 2002-03. These returns were processed u/s 143(1) of the Act on 20.08.2002 and 24.02.2003 computing refund of Rs.17,44,173/- and Rs.56,02,885/- for A.Ys 2001-02 and 2002-03 respectively. Processing of these returns was done u/s ITA 511-512/K/2011 Hindustan Gum & 2 Chemicals Ltd. A.Y 01-02&02-03 143(1) of the Act on 20.08.2002 and 24.02.2003 but refund voucher was sent only on 13.08.2004 for these years. The assessee in both the years moved a rectification application u/s 154 of the Act dated 12.04.2007 for both the years claiming interest on refund u/s 244A for the period from the date of processing till the issue of refund vouchers. The AO rejected rectification applications for the reasons that refunds cannot be issued for want of pending verification of technically defective of TDS certificates. It was admitted, in the order rejecting the rectification application that the refund vouchers were issued on 13.08.2004 for both the Assessment years.
4. Aggrieved, assessee preferred appeal before CIT(A) , who allowed the claim of assesee by a common observation for both the assessment years which are as under :-
"4. I have duly considered the submission of the AR of the appellant. As per the provisions of section 244A of the Act, the interest on refund is to be calculated on the refund amount 'from the 1st day of April of the assessment year to the date on which refund is granted.' Therefore, the appellant was entitled for interest upto the date of issuing of the refund, i.e. 13/08/2004. The AO, though tried to reason that the delay in issuing refund was attributable to the appellant 'for want of pending verification of technically defective TDS certificates' but did not point out any specific defect in any TDS certificates. Had there been any defects in TDS certificates, it would have affected the resultant refund itself. The time taken by the Department for verifications with the issuers of the TDS certificates before issuing the refund cannot be attributable to the appellant. Under the circumstances, the AO is directed to allow interest on refund upto the date of issuing refund i.e. 13/08/2004. However, interest on interest is not allowable as there is no such provision in the Act."
5. We find that even now revenue before us could not contend anything that there is a fault on the part of assessee for claim of refund. Even it was not substantiated when technical defects in the TDS certificates were pointed out by AO. In the absence of anything from the revenue, we confirm the orders of CIT(A) and hence, both the revenue's appeals are dismissed.
6. In the result appeals of Revenue are dismissed.
Order pronounced in the open court .
Sd/- Sd/-
सी.
सी.डȣ.
डȣ.राव,
राव, लेखा सदःय,
सदःय महावीर िसंह, Ûयाियक सदःय
C.D.Rao, Accountant Member. Mahavir Singh, JudicialMember
(तारȣख)
तारȣख)Date: 10.02.2012.
ITA 511-512/K/2011 Hindustan Gum & 3
Chemicals Ltd. A.Y 01-02&02-03
R.G.(P.S.)
आदे श कȧ ूितिलǒप अमेǒषतः-
Copy of the order forwarded to:
1. M/s.Hindustan Gum & Chemicals Ltd., 9/1, R.N.Mukherjee Road, Kolkata-
700001.
2 D.C.I.T., Circle-12, Kolkata.
3. The C.I.T. 4. CIT(A),XXXVI, Kolkata.
5. The CIT(DR), Kolkata Benches, Kolkata स×याǒपत ूित/True Copy, आदे शानुसार/ By order, Deputy /Asst. Registrar, ITAT, Kolkata Benches