TDS: Payment of interest u/s 244A of Income Tax Act 1961 when assessee is not at fault: CBDT instruction

To
All Chief-Commissioners of Income Tax
All Director General of Income Tax

Subject: Payment of interest u/s 244A of Income Tax Act 1961 when assessee is not at fault – regarding.

Sir/Madam,

2. On this issue, the Hon’ble Court has observed as under:

“31. In the affidavit filed on 29th January, 2013, the respondents have stated as under:-

‘Where an assessee makes a mistake in the claim of TDS in the e-return and the return is processed and a demand is raised and subsequently, the assessee rectifies the mistake in the claim and files an online rectification application, the same is processed and on any excess TDS is refunded, the interest under section 244A is granted as per the I.T Act after excluding the period of delay attributable to the assessee in terms of sub-section 2 of section 244A of the Income Tax Act, 1961.’

32. An assessee can be certainly denied interest if delay is attributable to him in terms of sub-section (2) to Section 244A. However, when the delay is not attributable to the assessee but due to the fault of the Revenue, then interest should be paid under the said Section. False or Wrong uploading of past arrears and failure to follow the mandate before adjustment is made under Section 245 of the Act, cannot be attributed and treated as fault of the assessee. These are lapses on the part of the Assessing Officer i,e. the Revenue. Interest cannot be denied to the assessees when the twin conditions are satisfied and in favour of the assessee. However, even in such cases Assessing Officer may deny interest for reasons to be recorded in writing if the assessee was in ,fault and responsible for the delay. This is the fourth mandamus which we have issued.”

Stay connected with us via Facebook, Google+ or Email Subscription.

Subscribe to Central Government Employee News & Tools by Email [Click Here]
Follow us: Twitter [click here] | Facebook [click here] | Google+ [click here]
Admin