Payment of interest u/s 244A of IT Act, 1961 when assessee is not at fault
WHETHER computerisation and Central Processing of Income Tax Returns is a boon or bane is rather sample to answer, as benefits of computerisation easily outweigh and outscore any argument to the contrary. Computerization does away with human or manual element and the frailties attached and ensures transparency besides being quick and fool proof. Alas, it is a human element and frailties which have resulted in the present Public Interest Litigation (PIL) which was initiated pursuant to the letter dated 30th April, 2012 written by Anand Prakash, F.C.A. Chartered Accountant - these are the opening lines of the landmark decision of the Delhi High Court reported by us almost four months ago. See 2013-TIOL-207-HC-DEL-IT.
This 12 point letter saw the Delhi High Court issuing a seven point mandamus for necessary action by the Income Tax Department.
Instruction dated July 10, 2013 has been issued and it pertains to the subject "Past adjustment of refunds against the arrears where procedure u/s 245 of Income Tax Act was not followed- regarding".
The present instruction has been issued covering "Payment of interest u/s 244A of Income Tax Act 1961 when the assessee is not at fault."
Adverting to the observations of the Court made in paragraphs 31& 32, the CBDT seeks strict compliance of the following -
"3. In view of the direction of the Hon'ble Court, I am directed to convey that in no case should interest u/s 244A of the Act be denied to the assessee where the assessee is not at fault. The observation of the Hon'ble High Court in Para 32 above be strictly kept in mind while dealing with such matters."
Instruction No. , Dated: July 15, 2013