TMI Blog2010 (11) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... an allegedly "justifiable" withholding - Decided in favour of the assessee Regarding MAT credit - Since the CIT(A) has not adjudicated the additional ground raised by the assessee; therefore, we, in the interest of justice deem it proper to restore this matter back to the file of the CIT(A) with a direction to admit the additional ground and adjudicate the same - Decided in favour of the assessee by way of remand to Commissioner - ITA No.6602/Mum/2008 - - - Dated:- 19-11-2010 - D.K. Agarwal, R.K. Panda, JJ. Rajan R. Vora for the Appellant Naresh Kumar Balodia/DR for the Respondent ORDER Per: R K Panda: This appeal filed by the assessee is directed against the order dated 13.8.2008 of the CIT(A)-XI, Mumba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee for more than two years until he passed an order dated 26th Sept 2006 u/s 154 of the I T Act wherein he determined the balance refund due to the assessee at Rs.42,15,279/-. Further, a refund of Rs.13,16,576/- was determined due to the assessee on account of MAT credit brought forward from AY 1998-99, thereby the total refund due to the assessee to be at Rs.55,31,855/-. Out of the above an amount of Rs.1,77,531/- was adjusted against the demand for Assessment Year 2001-02 and the balance amount of Rs.53,54,324/- was adjusted on 4.12.2006 against the demand for Assessment Year 2003-4 3.2 Vide letter dated 9.11.2006, the assessee made a request to the Assessing Officer to rectify the mistake of short grant of interest on refund and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is in appeal here before the Tribunal. 5. The ld counsel for the assessee referring to the decisions of the Hon'ble Supreme Court in the case of Sandvik Asia Ltd reported in 280 ITR 643 and in the case of Narednra Doshi reported in 254 ITR 606 submitted that the assessee should be granted interest u/s 244A on the sum of Rs.42,15,279/ for the period Sept 2004 to Dec 2006. He also relied on various decisions of the Tribunal as well as High Courts and submitted that the Assessing Officer should be directed to grant further interest u/s 244A of the Act for the period from Jan 2007 till the date of grant of refund in view of the ratio laid down by the Hon'ble Supreme Court in the case of Sandvik Asia Ltd (supra). 5.1 The ld DR, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late or other authority specified in section 240. The expression "amount" in the earlier part of section 244(1A) refers not only to the tax but also to the interest; it is a neutral expression and it cannot be limited to the tax paid in pursuance of the order of assessment". The Hon'ble Supreme Court has further held that "even assuming that there is no provision for payment of compensation, compensation for delay is required to be paid as the Act itself recognizes in principle the liability of the department to pay interest when excess tax was retained and the same principle should be extended to cases where interest was retained.". The Hon'ble Supreme Court has also held that "there is no question of the delay being "justifiable", and eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the said issues were on records and disregarding ratio laid down by various Courts and Tribunals. 10. After hearing both the parties, we find the assessee has filed an additional ground before the CIT(A) regarding interest on refund arising out of set off of MAT credit. The CIT(A) rejected the additional ground raised by the assessee on the ground that it is purely legal matter and the assessee has moved rectification application before the Assessing Officer and it is also pending before the Assessing Officer. Further, the issue of interest of interest never arose during the assessment hearing and is only an afterthought by the assessee. He accordingly rejected the additional ground raised by the assessee. 11. Aggrieved with su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with law. We hold and direct accordingly. This ground raised by the assessee is accordingly allowed for statistical purpose. 14. Grounds of appeal no.4 by the assessee reads as under: "CIT(A) erred in not granted interest u/s 244A on refund of Rs.1,316,576/- arising out of MAT credit, without appreciating the fact that the said refund had arisen out of Tax Deducted at Source Advanced Tax and Self Assessment Tax paid. 15. After hearing both the parties, we find this ground is correlated to the additional ground raised by the assessee before the CIT(A). Since the CIT(A) did not adjudicate the additional ground, we restored the issue to his file. Therefore, we restore this issue also to the file of the CIT(A) for fres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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