9911796707
TMI Blog2012 (8) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... was justified in withdrawing the interest already allowed u/s 244A in proceedings u/s 154 of the Income-tax Act. 2. That the action of the CIT(A) is against the law and facts of the case." 3. The ld. 'AR' narrated the factual background of the case, which is undisputed in nature. The grievance of the assessee is that interest granted on refund u/s 244A of the Act has been withdrawn by the revenue. He was of the opinion that the order charging interest u/s 234D of the Act, by the revenue, was set aside by the CIT(A) as well as the Tribunal. Therefore, on the same analogy, ld. 'AR' urged to set aside the order, withdrawing the interest, granted on refund u/s 244A of by an order passed u/s 154 of the Act. 4. Ld. 'DR', on the oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Both the CIT(A) vide order dated 26.02.2009 and the Tribunal in ITA No. 494/Chd/2009 vide order dated 26.08.2010, adjudicated the issue of levy of interest u/s 234D of the Act against the revenue. A perusal of the impugned order of the Tribunal reveals that the present C.O. raised by the assessee, in respect of withdrawal of interest u/s 244A of the Act, was not adjudicated by the Tribunal. Therefore, the assessee feels aggrieved in respect of non-adjudication of the C.O. 5. (i) The assessee, has placed reliance on the decision, in the case of Bharat Conductors (P.) Ltd. v. CIT [1999] 238 ITR 89 (Kar.), CIT v. Satish Traders [2001] 247 ITR 119/114 Taxman 390 (MP) and CIT v. Hindustan Electro Graphites Ltd. [2000] 243 ITR 48/109 Taxman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, as a result of an order under sub-section (3) of Section 115WE or Section 115WF or Section 115WG or sub-section (3) of Section 143 or Section 144 or Section 147 or section 154 or Section 155 or Section 250 or Section 254 or Section 260 or Section 262 or Section 263 or Section 264 or an order of the Settlement Commission under sub-section (4) of Section 245D, the amount on which interest was payable under sub-Section (1) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and in a case where the interest is reduced, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the amount of the excess interest paid and requiring him to pay suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellate order dated 26.02.2009, is reproduced hereunder : "5.1 Coming to the issue of withdrawing of interest u/s 244A, it is the contention of the ld. counsel that for similar arguments as advanced by him against charging of interest u/s 234D as discussed above, the AO could not be said to be justified in withdrawing interest u/s 244A. However, I do not agree with the ld. Counsel in this regard. As per the ratio of the various decisions relied upon by the ld. counsel and which have been discussed above as assessee is not to be penalized by charging interest on the additional demand created as a result of retrospective amendment to the provisions of the Act. Whereas charging of interest u/s 234D on such an income could be said to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of statutory provisions under the Act. The issue in question falls u/s 154 of the Act. The charging of interest is compensatory in nature. If a tax demand raised by the AO is varied by an appellate or revisional authority, it is the appellate and revisional order and not the assessment order, that would hold the field under the doctrine of merger, and hence, fresh notice of demand is to be issued accordingly. An increase in tax liability would correspondingly reduce the amount refundable and also the interest payable on such reduced refund. Provisions of Section 244A(3) of the Act clearly cover such a situation. If the contention of the assessee is accepted, it would lead to irrational and absurd consequences, which would make the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
