TMI Blog2005 (11) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case and in law, the learned CIT(A) has erred in holding that the assessee is entitled to interest under section 244A for the period 9-2-2000 to 14-12-2000. 2.On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in failing to appreciate that the delay in passing the order giving effect to CIT(A) s order was directly attributable to non-compliance by the assessee in terms of AO s letters dated 9-2-2000 and 12-6-2000; 3.On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in not appreciating the fact that as per section 244A(2) of Income-tax Act, 1961 the jurisdiction over the aforesaid dispute regarding the period for calculation of interest under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the matter is required to be adjudicated by the Commissioner or Chief Commissioner and therefore, the CIT(A) squarely erred in adjudicating on this issue. Learned DR contents that the CIT(A) had no jurisdiction in the matter and therefore, his order is to be vacated on that issue. It is also contended that there was no co-operation from the assessee and therefore, the order giving effect to the appellate order was delayed due to lapse of the assessee. The assessee cannot be awarded interest for the period in which delay is caused because of assessee s lapse. It was on the strength of these submissions that the learned DR urged us to vacate the relief given by the CIT(A) and restore the order of the Assessing Officer on the issue in appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. We find that the issue in appeal, i.e. , denial of interest under section 244A, came up before the Co-ordinate Bench in the case of Artist Tree (P.) Ltd. ( supra ) to which one of us was a party (AM). In the said decision the Tribunal observed as follows : "4.We find that section 244A(2) categorically provides that, "If the proceedings resulting in the refund are delayed for reasons attributable to the assessee, whether wholly or in part, the period of the delay so attributable to him shall be excluded from the period for which interest is payable, and where any question arises as to the period to be excluded, it shall be decided by the Chief Commissioner or Commissioner whose decision thereon shall be final". It is, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to show cause as to why interest under section 244A for that period not be declined. In case assessee objects to the same and the Assessing Officer is of the view that the objection raised by the assessee is not justified, this issue is to settled by the Commissioner or the Chief Commissioner, as the case may be, whose decision is final and binding on both the parties. However, in our considered view, it is not open to the Assessing Officer to take a unilateral and ex parte decision on the issue, as has been done in the case before us. 6.It is also noteworthy that interest under section 244A is a compensatory interest as, under this section, revenue is paying interest only on assessee s money which is in excess of his tax dues and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 244A(2) is that at the time of proceedings before the Assessing Officer, if Assessing Officer is of the view that the delay in issuance of refund is on account of lapses on the part of the assessee he has to issue a show-cause notice to the assessee calling upon the assessee to show cause as to why the powers under section cannot be exercised on the facts of the said case. In case, the Assessing Officer satisfied that it is a fit case for exercise of such powers and the assessee is to be declined interest under section 244A, he has to inform the assessee of the same in order to give effect to the scheme of section 244A(2) which provides that the matter is to be resolved by the Commissioner or Chief Commissioner of Income-tax because o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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