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2014 (10) TMI 397 - HC - Income TaxRefund of amount paid as advance tax - Payment of interest on interest - Held that:- The application to refund the advance tax as well as the quantum thereof was the subject matter of the proceedings which culminated in the Supreme Court - Claiming any amount over and above what was awarded by the Supreme Court would amount to widening the purport of the order of the Supreme Court - The Tribunal did not take this aspect into account - Once amounts are paid in compliance with the directions issued by a Court, no inferior forum or Court can modify the direction thereof directly or indirectly - Revenue contended that all the claims, which the assessee was entitled to regarding the refund, have merged into the orders of the Supreme Court and unless there was a specific direction issued by the Supreme Court for payment of interest on interest also, there was no occasion for the respondent to lay a claim – the Supreme Court has simply directed the authorities to extend the benefit by taking into account the principle laid down in Modi Industries Limited And Others Versus Commissioner of Income-Tax And Another [1995 (9) TMI 324 - SUPREME Court] - there was no direction for payment of interest on interest - notwithstanding the fact that there are precedents which held that an assessee is entitled to be paid interest on interest also, once the refund of the amount collected towards advance tax and the correspondent interest are paid in compliance with the direction issued by a Court, an assessee cannot claim interest on interest, independent of the order on the basis of which such payments are made – thus, the order of the Tribunal is set aside – Decided in favour of revenue.
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