TMI Blog2014 (3) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory interest and not the interest on interest on the refund due to the assessee - the assessee is entitled only for simple interest - If the interest is calculated and becomes part of the amount of tax to be refunded to the assessee and in case there is a delay in payment thereof, the assessee may be entitled to get interest on the said amount due from the department which has been calculated and ascertained and in case the interest has not been calculated and merely there is a delay in payment of the refund, the assessee is entitled to interest as per the provisions of Act i.e. section 244A of the Act and not interest on interest – thus, the order of the CIT(A) upheld – Decided against Assessee. - I.T.A. No.6923/Mum/2011 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n purposes and accordingly revised the amount. The assessee filed appeal before the First Appellate Authority contending that the AO granted short interest u/s 244A of the Act. The assessee stated that interest granted to the assessee of Rs.93,10,238/- is not correct as the amount of interest u/s 244A works out to Rs.3,50,43,107/-. The contention of the assessee was that the AO ignored interest on interest for subsequent periods. However, the ld. CIT(A) did not accept the contention of the assessee and stated that section 244A of the Act clearly defines the method of calculation under which the interest on refund due to the assessee is to be calculated. AO has quantified the exact amount of interest due to the assessee as per the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory period. 6. We have carefully considered the submissions of ld. Representatives of the parties in the light of decisions cited before us of the Hon'ble Apex Court (supra). 7. We agree with the ld. DR that the Hon'ble Apex Court vide its order dated 18.9.2013 has stated that the case of Sandvik Asia Ltd. (supra) has been misquoted and misinterpreted by the assessee and also by Revenue that the Hon'ble Apex Court had directed to pay interest on the statutory interest in case of delay in payment. We observe that the Hon'ble Apex Court has held in para 8 that Section 244A provides for interest on refunds under various contingencies and clarified that interest provided for under the statute which may be claimed by an as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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