CEAT LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is an appeal filed under Sec. 260A of the Income Tax Act, 1961 (the Act) impugning an order dtd. 5/12/2002 passed by the Income Tax Appellate Tribunal, Mumbai Bench (ITAT) dismissing appellant's appeal and refusing grant of interest under Sec. 244A(1)(a) of the Act on the refund admissible to appellant. The ITAT refused to grant interest on the ground that the refund arising on regular assessment after allowing TDS and advance tax is less than 10% of the tax as determined on regular assessment.

(2.) For the Assessment Year 1989-1990 appellant returned an income of Rs.43,64,37,800.00 as per the original return of income under Sec. 139 of the Act and paid tax of Rs.22,68,62,710.00 [comprising of Rs.20,44,29,076.00 as advance tax and tax deducted at source (TDS) and Rs.2,24,33,634.00 of self assessment tax (SA Tax)]. While processing appellant's return under Sec. 143(1) of the Act, the Assessing Officer made certain additions raising a demand of Rs.1,61,73,216.00. The said amount was paid by appellant on 25/6/1991.

(3.) Appellant's return was picked up for scrutiny and in the order of assessment dtd. 21/3/1992 under Sec. 143(3) of the Act, income was ascertained at Rs.45,91,84,440.00 determining a tax of Rs.24,35,95,193.00. A demand of Rs.3,32,42,443.00 was raised of which a sum of Rs.3,19,86,809.00 was paid by appellant on 22/4/1992.