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2015 (3) TMI 609 - ITAT COCHINNon-granting of interest on interest on refund due - Assessing Officer sought to recover the excess interest granted to the assessee vide rectification order - CIT(A) allowed claim of the assessee with regard to the refund of the amount with interest is justified but the claim of the assessee with regard to interest on interest was not allowed - Held that:- Said judgment of the Supreme Court of CIT v. Narendra Doshi [2001 (7) TMI 10 - SUPREME Court] as relied upon by assessee not coming to the aid of the assessee and permit the assessee to claim interest on interest under the given situation. No doubt, when the tax paid is more than what is due, as a result of certain additions, etc., made by the Assessing Officer and in appeal when those are deleted by the appellate authority, the refund of the excess amount is to be made along with interest, as envisaged under section 243 of the Act. It is only when this interest is not refunded that the assessee would become entitled to the interest on the said interest as well. That was the factual position in Sandvik Asia Ltd. v. CIT [2006 (1) TMI 55 - SUPREME Court]. In contradistinction, where the interest is paid along with the amount payable as refund, the question of payment of interest on interest does not arise. Present cases fall under this category. In the present case, the order of the CIT (Appeals) would demonstrate that he had taken into consideration that the assessee is entitled to interest for a period from January 1, 1999 to March 19, 2010 and accordingly, he granted the same. Interest on interest is not at all the subject matter of the order passed by the Assessing Officer under section 154 of the Income-tax Act on June 2, 2011. Being so, in the present case, the assessee has been granted interest under section 244A of the Income-tax Act as due to him and the calculation of the interest was not disputed by the assessee. The assessee cannot widen the scope of the provisions of section 154 by putting various debatable issues. The various case law relied on by the learned authorised representative is of no relevance in view of the latest judgment of CIT v. Gujarat Fluoro Chemicals [2013 (10) TMI 117 - SUPREME COURT] wherein held that it is only that interest provided for under the statute which may be claimed by an assessee from the Revenue and no other interest on such statutory interest. - Decided against assessee.
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