STATE BANK OF TRAVANCORE Vs. CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NEW DELHI

JUDGEMENT

(1.) This review petition has been filed seeking to review the judgment dated 23.9.2016 in W.P.(C).No.19283 of 2007 inter alia contending that an earlier judgment of a Division Bench of this Court with reference to the very same subject matter could not be placed when the matter was heard. Learned counsel for the petitioner relies on Commissioner of Income-tax, Thiruvananthapuram v State Bank of Travancore,2014 42 taxmann.com 572 (Kerala). That was a case filed by the revenue challenging an order passed by the lower authorities, directing payment of interest under section 244A of Income-tax Act, 1961 for the delay caused by the assessee for correcting the TDS certificates. It was held at paragraph 4 as under.

(2.) Learned counsel for the petitioner submits that in the present case also the issue is related to denial of interest under 244A of the Act on the finding that there was delay on the part of assessee in curing the defects in the TDS certificates. When an identical case has been decided by the Division Bench as referred earlier, the petitioner is also entitled to have the same benefit to be adopted in the present case also.

(3.) As far as the present case is concerned, this Court upheld an order passed by the Chief Commissioner by which it was found that interest was not payable to the petitioner for the period of delay which occurred in curing the defects in the TDS certificates. This Court having taken note of Section 244 A (1) and (2) opined that if the delay is on the part of the department in finalizing the difference, interest is payable from the date on which it becomes due. However, in terms of sub Section (2), if the delay in the proceedings resulting in refund is with reference to finalisation of returns and is not in regard to the proceedings for refund, with reference to contention that the period taken is for curing the defects in the TDS certificates cannot be a reason which could be attributable to the assessee.