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2021 (4) TMI 752 - MADRAS HIGH COURTInterest on interest u/s 244A - Whether Tribunal was right in its conclusion that the department should pay interest on interest especially when there was no inordinate delay in the payment of refund? - HELD THAT:- As following the judgments of the Hon'ble Supreme Court reported in [2013 (10) TMI 117 - SUPREME COURT] (SC) and [2009 (12) TMI 35 - SUPREME COURT] (SC), the Hon'ble Division Bench of Delhi High Court in CIT Vs. Indian Farmer Fertilizer Co-operative [2015 (3) TMI 280 - DELHI HIGH COURT] held that to the extent it directs payment of any sum over and above interest payable under Section 244A(1) to the assessee cannot be upheld. Following the ratio laid down by the Apex Court and the Delhi High Court, the substantial questions of law are decided in favour of the appellant - Revenue and the order passed by the Income Tax Appellate Tribunal is set aside and the matter is remitted back to the Assessing Officer for fresh consideration. The Assessing Officer is directed to decide the matter afresh, following the ratio laid down by the Hon'ble Supreme Court of India in the judgments reported in CIT Vs. Gujarat Fluoro Chemicals [2013 (10) TMI 117 - SUPREME COURT] AND CIT Vs. H.E.G. Ltd. [2009 (12) TMI 35 - SUPREME COURT] and pass orders after giving notice to the assessee.
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