The Income Tax Appellate Tribunal (ITAT), Delhi Bench remitted the matter to AO for fresh computation of interest allowable to Maruti Suzuki India.
In all these six appeals, three appeals filed by Revenue and three appeals filed by the Assessee, Maruti Suzuki India the disputes pertain to the sole issue of interest under Section 244A of Income Tax Act, 1961 payable by Revenue to the assessee.
The Ld. CIT(A) for Assessment Years 1995-96, 1996-97, and 1997-98 respectively expressed the view that interest should be given to the assessee under Section 244A of Income Tax Act for the full month even if tax is paid by the assessee on the last day of the month.
The Revenue appealed against the impugned appellate orders of the CIT(A) on the ground that payments of tax or adjustments were made on the last day of the month. Revenue is of the view that for constituting part of the month, at least one day should have been completed and a few hours of the day do not constitute part of the month.
Both sides agree that in identical facts and circumstances the issue in dispute has already been decided in favour of the assessee in the assessee’s own case, consequently the appeals of Revenue were dismissed.
The coram of Sudhanshu Shrivastava and Anadee Nath Misshra restored the matter raised in aforesaid appeals of the assessee, to the file of the Assessing Officer for fresh computation of interest allowable to the assessee under Section 244A of Income Tax Act, in accordance with law; after providing reasonable opportunity to the assessee.
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