Refund : Interest u/s.244A of Income-tax Act, 1961 : A.Y. 2001-02 : TDS certificates submitted during assessment proceedings : Delay on refund not attributable to assessee : S. 244A(2) not attracted : Assessee entitled to interest u/s.244A.

[CIT v. Larsen & Toubro
Ltd., 235 CTR 108 (Bom.)]

For the A.Y. 2001-02, the
assessment was completed by an order dated 31-3-2003 passed u/s. 143(3) of the
Income-tax Act, 1961. TDS certificates were filed in the course of the
assessment proceedings. Interest u/s.244A was denied on the ground that the TDS
certificates were not furnished with the return of income. The Tribunal found
that tax was deducted and deposited in the exchequer in time and that the
proceedings resulting in refund, has not been delayed for reasons attributable
to assessee. The Tribunal accordingly directed the Assessing Officer to pay
interest u/s. 244A for the period from
1-4-2001 to the date of refund.

On appeal by the Revenue,
the Bombay High Court upheld the decision of the Tribunal and held
as under :

“(i) S. 244A(2) provides
that in the event the proceedings resulting in refund has been delayed for
reasons attributable to the assessee, the period of delay so attributable
shall be exclude from the period for which the interest is payable. In the
present case, S. 244A(2) is clearly not attracted. The proceedings resulting
in the refund was not delayed for reasons attributable to the assessee.

(ii) 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 tax was in
fact deducted at source at the right time. In the circumstances, the Tribunal
was 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.

(iii) S. 244A(2) is not
attracted. The appeal, therefore, does not raise any substantial question of
law and is dismissed.”