Revenue appeal under Section 260A was dismissed as the substantial question of law regarding interest on self-assessment tax refunds became devoid of merit following the Supreme Court's decision in Stock Holding Corporation of India Ltd Vs. CIT.
Appeal dismissed; no order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
4.itxa.143.2012.doc
dik
IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO. 143 OF 2012
The Director of Income Tax (IT)-1 Mumbai ...Appellant.
vs M/s Deutsche Bank AG ...Respondent
Mr Tejveer Singh for the Appellant.
Mr Percy Pardiwalla, Sr. Counsel a/w Mr B.D.Damodar i/b Kanga & Co. for the Respondent.
CORAM : M.S.SANKLECHA & S.C. GUPTE, JJ.
NOVEMBER 19, 2014
P.C. :
This appeal by the Revenue under Section 260A of Income Tax Act, 1961 ('Act') is from the order dated 15 June 2011 passed by the Income Tax Tribunal ( for short “ITAT”), dismissing the Revenue's appeal for the A.Y. 200102.
2 The following question has been raised by the Revenue for our consideration:
“ Whether, on the facts and circumstances of the case and in law the Tribunal was justified in upholding the decision of CIT (A) of granting interest under section 244A on the selfassessment tax paid by the Assessee?”
3 The Respondent – Assessee became entitled to refund for the A.Y. 2001-02 consequent to the order passed in appeal by the Commissioner of Income Tax (Appeals) (for short “CIT(A)”). However, the Assessing Officer while
Pg 1 of 2
4.itxa.143.2012.doc
passing an order giving effect to the order of CIT(A) did not grant interest due to the Petitioner on the amount refunded attributable to tax paid on self assessment under Section 140A of the Act.
4 An Appeal was filed by the respondent from the order of Assessing Officer before the CIT(A). By order dated 19 February 2010, the CIT(A) allowed the appeal holding that in terms of Section 244A(1)(b) of the Act, assessee is entitled to interest on tax paid on self assessment under Section 140A of the Act.
5 The Revenue being aggrieved by the order of CIT(A) filed an appeal to the Tribunal. The Tribunal while dismissing the appeal of the Revenue, placed reliance on the decisions of ACIT Vs Sandoz Ltd. (ITA 2863/M/05) (A.Y.200001) (dated 15 May 2006) and ACIT Vs Navartis India Ltd. (ITA No.4767/Mum/2005) A.Y.1999-00) (dated 16 August 2005) , wherein it has been held that “in any other case” would certainly include cases where tax has been paid by way of self assessment.
6 It is agreed by counsel that the issue is no longer res integra in view of the decision of this Court in case of Stock Holding Corporation of India Ltd Vs. CIT, rendered on 17 November 2014. In the above order it has been held that Section 244A(1)(b) of the Act would oblige the revenue to pay interest even on refunds arising from the tax paid by way of an self assessment under Section 140A of the Act.
7 In view of the decision of this Court Stock Holding Corporation (supra), no substantial question of law arises for consideration.
8 Accordingly, appeal is dismissed. There shall be no order as to costs.
( S.C.GUPTE J. ) ( M.S.SANKLECHA J. )
Pg 2 of 2
2 issues framed by the court
Whether the Tribunal was justified in upholding the CIT(A)'s decision to grant interest under Section 244A on self-assessment tax paid?
Whether the Revenue's substantial question of law survives after the decision of Stock Holding Corporation of India Ltd Vs. CIT
Colour shows how this judgement treated each authority
ACIT Vs Sandoz Ltd.Followed¶20
ACIT Vs Sandoz Ltd. (ITA 2863/M/05) (A.Y.200001) (dated 15 May 2006)
ACIT Vs Navartis India Ltd.Followed¶20
ACIT Vs Navartis India Ltd. (ITA No.4767/Mum/2005) A.Y.1999-00) (dated 16 August 2005)
Stock Holding Corporation of India Ltd Vs. CITApplied¶21
Stock Holding Corporation of India Ltd Vs. CIT (17 November 2014)
3 provisions across 1 enactments
Director of Income Tax (IT)-1 Mumbai
M/s Deutsche Bank AG
M.S. Sanklecha
S.C. Gupte
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
