Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 812 - HC - Income TaxInterest under section 244(1A) denied - whether an appeal lies against an order refusing to grant interest? - CIT(A) held that an appeal for claiming interest under section 244(1A) of the Act is not entertainable in a case where the order giving the appeal effect itself is not being challenged on any ground? - Held that:- The order passed by the CIT(Appeals) had virtually set aside the earlier order of assessment. Therefore, a fresh assessment was required to be made which the Assessing Officer did and directed refund but omitted to pass an order directing payment of interest. Therefore, it was an order passed under section 143(3) of the Act. It cannot be disputed that an appeal against an order passed under section 143(3) is permissible. It is altogether a different matter that the entitlement to interest arises out of section 244(1A) of the Act. A civil court may pass or refuse to pass an order for payment of pendentelite interest under section 34 of the Code of Civil Procedure. But it cannot be contended that the decree is one passed under section 34 of the Code of Civil Procedure. We are as such of the opinion that the learned Commissioner of Income-tax fell into a grievous error in proceeding on the basis that it was an appeal against an order refusing to grant interest under section 244(1A) of the Act. The appeal was an appeal against the order of assessment under section 143(3) of the Act in which the Assessing Officer omitted to grant interest which he should have done under section 244(1A) of the Act. Therefore, the question which has been posed on behalf of the Revenue does not, in our opinion, arise in the facts and circumstances of the case. - Decided in favour of the assessee.
|