TMI Blog2022 (8) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... was computed with a shortfall. Interest on interest as available to assessee under newly inserted sub-clause (1A) will have to be analysed in accordance with law. The year under consideration is Assessment Year 2020-21 and therefore interest on interest has to be computed for the shortfall amount that assessee is liable to receive. We therefore remand this issue to the Ld.AO to compute the actual refund along with the interest u/s. 244A and on the shortfall amount that assessee did not receive over and above that was computed by the CPC vide intimation dated 30/03/2021, assessee has to be granted interest on interest under sub-clause (1A) of section 244A of the Act. Grounds raised by the assessee stands partly allowed for statistical pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(1) of the Act but somewhere else 3. The CIT(A) failed to appreciate and ought to have held that: (1) The appeal by the appellant was filed against intimation order issued u/s. 143(1) as well as tax refund order issued u/s. 237 and not merely against intimation order; (2) The appeal by the appellant has been filed on August 16. 2021 i.e. after the date of receipt/ grant/ adjustment of tax refund amount as per NSDL portal on May 21, 2021: (3) The tax refund determined in the intimation order dated March 30. 2021 has actually been granted to the appellant by way of manual refund cheque on March 29. 2022 pursuant to the order of Karnataka High Court and the same has been credited to Appellant's Bank account in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a tax refund of Rs.3,78,27,000/- (income tax of Rs. 3,56,85,860/- plus interest u/s. 244A of Rs. 21,41,140/-. The tax refund granted was adjusted as per details given as follows: a) Rs. 3,10,60,818/- on 21/05/2021 towards tax demand outstanding as per system for AY 2009-10. b) Rs. 67,66,182/- on 21/05/2021 towards tax demand outstanding as per system for AY 2014-15. 2.3 It is submitted that while processing the return, the CPC granted interest on the tax refund amount under section 244A at Rs. 21,41,140/- as against the correct amount of interest allowable at Rs. 24,98,010/- u/s. 244A resulting in short grant of interest by Rs. 3,56,870/- on the tax refund amount which was granted / adjusted against the tax demand on 21/05/2021. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the appellant that the intimation under Section 143(1) of the Act was served upon it on 30.03.2021 itself. The argument of the appellant is that earlier the refund was adjusted against its demand for other years on 21.05.2021 and further in consequence of the order dt. 09.02.2022 of the High Court, the refund was issued to it on 29.03.2022. The argument of the appellant is thus that the interest should have been computed up to 29.03.2022. However, this argument of the appellant is found to be devoid of any merit. The reply of the appellant itself shows that the appellant is not aggrieved by the order under Section 143(1) of the Act, which was passed on 30.03.2021. Instead, it is aggrieved by a subsequent action of the AO in not issuing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the submissions advanced by both sides in the light of records placed before us. 6. This issue stands settled by Hon ble Supreme Court in case of Sandvik Asia Ltd. vs. CIT reported in [2006] 280 ITR 643 wherein Hon ble Court observed as under that in that case Sandvik Asia has refunded the principal, however interest was withheld for a long time. 7. The Hon ble Court was of the view that refund being withheld without any reason, the assessee would be entitled to receive such amount with further interest. Subsequently, larger Bench of the Hon ble Supreme Court considered the question whether the decision in case of Sandik Asia Limited v. CIT [Supra] lays down the principle that interest on interest is payable when the refund is de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusion that there was an inordinate delay on the part of the Revenue in refunding certain amount which included the statutory interest and therefore, directed the Revenue to pay compensation for the same not an interest on interest. 8. We also note that Coordinate Bench of this Tribunal in case of ACIT vs. Bharat Petroleum Corporation Ltd. in ITA Nos. 5231,5232 5233/Mum/2019 by order dated 30.06.2021 in respect of additional interest that might be applicable to assessee u/s. 244(1A) has held to be available only after 01/06/2016 as observed by Hon ble Gujarat High Court in case of Gujarat Flourochemicals Ltd. vs. CIT reported in [2015] 377 ITR 307 (Guj.). In the present facts of the case, assessee is no doubt eligible for interes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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