- (1.) Instant appeal has been preferred by the CIT, Kota, for the asst. yr. 2000-01, assailing the order dt. 28th Feb., 2006 passed by the learned Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (in short the Tribunal') for quashing the order under s. 263 of the IT Act, 1961, in short ('the Act'). The brief facts of the case are given hereunder: The respondent-company being a limited company, filed its return on 30th Nov., 2000 declaring nil income and paid taxes of Rs. 17,17,98,327 under (Minimum Alternate Tax) (in short 'MAT) on book profit under s. 115JA of the Act. The return was processed under s. 143(1)(a) by the AO on 30th March, 2001 and the tax/MAT was also computed by AO on the book profit disclosed by the respondent at Rs. 16,03,07,717. In view of the payment of excess tax paid under MAT at Rs. 17,17,98,327 the AO worked out a refund of Rs. 1,74,90,610 (Rs. 17,17,98,327-Rs. 16,03,07,717) and directed for issuing a refund of Rs. 1,95,89,482 to the respondent-company including interest under s. 244A of the Act, accordingly, the refund was issued along with interest.
(2.) The respondent-company further moved an application under s. 154 of the Act on 27th Aug., 2001 claiming further interest under s. 244A for the period 1st April, 2001 to 18th July, 2001. The AO, being satisfied, granted further interest under s. 244A amounting to Rs. 6,12,171 for the balance period as claimed.
(3.) The learned Commissioner of Income-tax, Kota, in short 'CIT while issuing notice under s. 263 of the Act, had held that the two orders passed by the AO dt. 30th March, 2001 as well as dt. 13th June, 2002 were erroneous and prejudicial to the interest of Revenue on the basis that tax has been paid by the assessee under MAT on the book profit under s. 115JA of the Act, which cannot be equated with payment of the advance tax by the respondent on its total income/current income which is chargeable to tax following the financial year under consideration and further that proviso to sub-s. (2) of s. 115JAA dealing with the tax credit in respect of tax paid on deemed income relating to certain companies, clearly stated that no interest shall be payable on the tax credit alone under Sub-s. (1) thereof. Accordingly, the CIT by invoking the provisions of s. 263 of the Act directed the AO to withdraw the interest so granted under s. 244A of the Act. amounting to Rs. 21,98,872 and further Rs. 6,12,171 respectively which was allowed vide two orders dt. 30th March, 2001 and 13th June, 2002 referred to hereinabove.;