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2017 (1) TMI 1779 - AT - Income TaxInterest under section 244A - refund granted on deleted Penalty u/s 271(1)(c) - whether the assessee is entitled to receive interest us 244A of the Act till the date of issuance of refund voucher? - HELD THAT:- We find, the Tribunal, Lucknow Bench in assessee’s own case [2011 (7) TMI 1322 - ITAT LUCKNOW ] had decided the issue in favour of the assessee by holding that interest under section 244A of the Act has to be granted till the date of issuance of refund vouchers. In view of the aforesaid, we direct the AO to allow interest on refund under section 244A of the Act till the date of issuance of refund voucher on 20th May 2011. The issue being identical in assessment year 2000–01, our aforesaid order will apply mutatis mutandis to the said assessment year and the Assessing Officer is directed to allow refund of interest accordingly. Grounds no.1 and 2 for both the assessment years are allowed. Interest on delayed payment of interest under section 244A - HELD THAT:- As perused the decision of the Hon'ble Supreme Court in Gujarat Fluro Chemicals Ltd. [2013 (10) TMI 117 - SUPREME COURT] we have noted that the Hon'ble Supreme Court after interpreting its own decision of Sandvik Asia Ltd. [2006 (1) TMI 55 - SUPREME COURT] had observed that the decision to grant interest therein was upon considering the fact that there was inordinate delay on the part of Revenue in refunding certain amounts which included statutory interest. However, Hon'ble Supreme Court held, after insertion of section 244A, which provides for interest on refund under various contingencies, the assessee is entitled to claim interest as provided under section 244A only and no other interest on interest is permissible. In view of the aforesaid decision, we do not find merit in the claim of the assessee. Accordingly, ground no.3, for both the assessment years are dismissed.
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