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2022 (1) TMI 241 - AT - Income TaxInterest payable u/s.244A - Refund claim - Date of determination of interest payable - HELD THAT:- As in the present case period involved is only 6 years and 4 months. Further, it is not a case of the assessee that money due to the assessee was determined and retained by the department without any reason. In fact, interest payable to the assessee was itself determined on 15.03.2018. If we consider date of determination of interest payable to the assessee as per provisions of section 244A of the Act, i.e., 15.03.2018, then the arguments of the assessee that there is inordinate delay in payment to the assessee which requires payment of compensation cannot be accepted. As per provisions of section 244A of the Act, the assessee is entitled only interest on income tax refund due to the assessee upto the date of payment of such refund - there is no provision in the Act to pay compensation to the assessee for certain delay in payment of interest, more particularly, such delay is on account of technical reasons. Therefore, we are of the considered view that there is no merit in arguments taken by the assessee in light of decision of the Hon'ble Supreme Court in the case of M/s.Sandvik Asia Ltd. Vs CIT[2006 (1) TMI 55 - SUPREME COURT] and also the decision in the case of CIT VS. Narendra Dosh [2001 (7) TMI 10 - SUPREME COURT] Hon’ble Karnataka High Court in the case of CIT Vs. M/s. Syndicate Bank [2020 (10) TMI 522 - KARNATAKA HIGH COURT] has considered identical issue and after considering decision of the Hon'ble Supreme Court in the case of Sandvik Asia Ltd. vs CIT (supra) observed that although, the Hon'ble Supreme Court very clearly held that revenue is liable to pay interest on the amount of interest while deciding issue, but fact remains that in the said case there was inordinate delay of 17 years and under those facts, it was held that the revenue is liable to pay compensation for unlawful retention of money due to the assessee. But, fact remains that as per provisions of section 244A of the Act, interest has to be paid to the assessee and such interest has to be paid in terms of section 244A of the Act only, which prescribes interest upto the date of granting refund to the assessee.Appeal filed by the assessee is dismissed.
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