The Commissioner of Income Tax vs Larsen and Toubra Ltd.

D.Y. Chandrachud, J.—The Revenue is in appeal u/s 260A of the Income Tax Act, 1961 and the only question is the correctness of the order of the Tribunal directing the Assessing Officer to grant interest u/s 244A.

The relevant details are as follows:

The assessee had filed a return of income on 28 November 2000 for assessment year 2001-01 and declared an income of Rs. 89.75 crores. On 14 March 2002, the assessee filed a revised return of Rs. 80.75 crores. The assessment proceedings commenced on 18 November 2002 with a notice u/s 143(2). The assessment order was passed on 31 March 2003 by which the Assessing Officer determined the income at Rs. 97.09 crores u/s 115JA. TDS certificates amounting to Rs. 1,44,34,030/- were submitted during the course of the assessment proceedings. Interest has been allowed to the assessee u/s 244A from 1 April 2001 on the refund under the TDS Certificate, until the date of refund.

Section 244A(2) provides that in the event the proceeding resulting in refund has been delayed for reasons attributable to the assessee, the period of delay so attributable shall be excluded from the period for which the interest is payable. In the present case, Section 244A(2) is clearly not attracted. The proceeding resulting in the refund was not delayed for reasons attributable to the assessee. Though the TDS Certificates were not submitted with the return and were filed during the course of the assessment proceedings, the Tribunal has noted that the tax was in fact deducted at source at the right time. In the circumstances, the Tribunal is correct in holding that since the benefit of TDS has been allowed to the assessee, interest u/s 244A could not be denied only on the ground that the TDS certificates were not furnished with the return of income. Tax was deducted and deposited in the exchequer in time. Section 244A(2) is not attracted. The appeal, therefore, does not raise any substantial question of law and is dismissed.