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2015 (8) TMI 704 - AT - Income TaxAllowability of interest on refunds due and paid to the assessee - eligibility for interest on interest - the assessee was deferred corpus and was beneficiary of M/s. K. Kachradas Patel Specific Family Trust deriving @5% accumulated beneficiary share, as per Schedule-II attached and forming part of the Trust Deed - Held that:- The assessee in the present case had moved an application under section 154 of the Act for granting of interest on refunds due to the assessee under the provisions of section 244A of the Act. In view of the ratio laid down in the case of Punitaben Karsanbhai Patel Oral Specific Deferred Family Trust [2006 (7) TMI 239 - ITAT AHMEDABAD-A] and also Hon'ble Gujarat High Court [2008 (6) TMI 576 - GUJARAT HIGH COURT] in the hands of the other beneficiaries and also the order of the Tribunal in the case of M/s. Vaibhavi Discretionary Family Trust (2015 (4) TMI 3 - ITAT MUMBAI) we hold that the issue of granting of interest on refunds due to the assessee is squarely covered and consequently we direct the AO to grant the said interest to the assessee. It may be clarified at this juncture that the earlier bunch of appeals decided by the Mumbai Benches of the Tribunal in M/s. Vaibhavi Discretionary Family Trust and others was in respect of the beneficiaries listed in Schedule-I whereas the present bench of appeals relate to beneficiaries listed in Schedule-II on account of deferred corpus where the right to receive the income comes after 18 years. Following the parity of reasoning of the orders of the different Benches of the Tribunal and also following the direction of the Hon'ble Gujarat High Court (supra) we allow the grounds of appeal raised by the assessee vis-a-vis grant of interest on refunds due under section 244(1)(a) of the Act. However, the assessee is not entitled to interest on interest in view of the ratio laid down by the Hon'ble Supreme Court in the case of CIT vs. Gujarat Fluoro Chemicals [2013 (10) TMI 117 - SUPREME COURT] - Decided partly in favour of assessee.
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