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2013 (2) TMI 531 - ITAT CHENNAIAssessee company is engaged in the business of generation of electricity through windmills - claimed deduction under section 80IA - disallowed in a reassessment proceedings undertaken under section 147 - This claim was accepted in the order passed under section 143(1) on 24.02.1998 - later on 10th November 2003, through notice under section 148 reassessment proceedings were initiated and the reassessment was completed on 29.10.2004 – Grievance of the assessee company is against this increase of tax demand resulting from charging of interest under section 220(2) of the Act on the tax demand – The grievance of the assessee is based on the premise that when the tax demand got vacated as a result of order dated 27th February, 2006 passed by the Assessing Officer to give effect to the order of the Commissioner of Income Tax(Appeals) dated 30.01.2006, no such interest could be charged because interest under section 220(2) is not chargeable when there is neither existing demand nor any default attributable to assessee. Held that:- On this ticklish issue, there are decision in the cases of Seshasayee Paper & Boards Ltd. Vs.CIT [2002 (9) TMI 59 - MADRAS HIGH COURT ] as well as the latest decision of Hon’ble Delhi High Court in the case of Girnar Investment Ltd. Vs. CIT[2012 (1) TMI 10 - DELHI HIGH COURT ] dated 5th January, 2012 . Issue remanded back to the CIT(A) so that he can also consider the decision of Girnar Investment Ltd (supra) recently rendered by the Delhi High Court - and has to pass a speaking order as to which decision actually applicable to the facts of the case and why - Accordingly, on this issue he has to pass a reasoned order which speaks about the application of the case laws - Accordingly, all the appeals are allowed both of assessee as well as Revenue for statistical purposes
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