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2016 (12) TMI 1867 - AT - Income TaxComputation interest payable to it u/s 214, 244 & 244A - HELD THAT:- Since the relevant assessment under consideration is assessment year 1984-85, we do not find any infirmity in the order of CIT(A) for directing the AO to compute interest u/s.214 and 244 and not u/s.244A of the IT Act. Accordingly, we confirm the action of the CIT(A) in this regard. Grievance of the assessee in the A.Y.1984-85 pertains to applicability of provisions of Section 214(1A) for allowing interest on refunds - AO declined interest u/s.214(1A) on the plea that amendment was brought w.e.f. A.Y 1985-86, therefore, no interest was to be allowed in the A.Y.1984-85. CIT(A) confirmed the order of AO and assessee is in further appeal before us - HELD THAT:- Issue is squarely covered by the decision of Hon’ble Bombay High Court in the case of Ultramarine & Pigments Ltd [2005 (12) TMI 69 - BOMBAY HIGH COURT] wherein the Hon’ble High Court held that even though sub-section 1A was introduced in Section 214 by Taxation Law (Amendment)Act, 1984 w.e.f.1.4.1985, the same would be applicable to all the pending cases. Taxation Laws (Amendment) Act, 1984 is procedural in nature and, therefore, it will apply to all the pending actions. This being so, sub-section (1A) which was introduced in section 214 will apply to the petitioner’s case, for the assessment year 1982-83. Respectfully following the above decisions of Hon’ble Bombay High Court, we do not find any merit in the order of the lower authorities for declining the claim of interest u/s.214(1A) for the assessment year 1984-85 under consideration. Rate of interest payable as per the provisions of Section 214/244 - We have considered rival contentions and found that the CIT(A) had held that even though the provisions of section 214/244 were applicable the rate of interest given in 244A has to be considered for grant of interest on refund. Since the provisions of section 214/244 has not been repealed, therefore, the rate of interest as given in the said sections i.e., Section 214/244 in the respective years should only be applied. In view of the above, we direct the AO to allow interest u/s.214/244, as per the rate prevailing in the respective assessment years. In the assessment year 1984-85, 1985-86 and 1987-88, the assessee has not given full credit for the TDS/DITR while computing net tax payable/refundable and interest thereon. In the interest of justice, we restore this ground back to the file of the AO to verify the same and for deciding the issue afresh as per law. We direct accordingly
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