TMI Blog2013 (10) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... compute the disallowance u/s. 14A accordingly – Decided in favor of Assessee. Interest u/s 244A of the Income Tax Act – Claim of interest by assessee on the statutory interest – Held that:- Reliance has been placed upon the judgment in the case of Sandvik Asia Ltd. vs. CIT [2006 (1) TMI 55 - SUPREME Court] - There was an inordinate delay on the part of the Revenue in refunding certain amount which included the statutory interest and therefore, directed the Revenue to pay compensation for the same not an interest on interest - Section 244A to the Act which provides for interest on refunds under various contingencies - It is only that interest provided for under the statute which may be claimed by an assessee from the Revenue and no other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and the other challenging the method of computation of disallowance u/s 14A of the Act. During the course of hearing, the Ld. Counsel for the assessee did not press the ground raised on the first point vis., challenging the disallowance made under section 14A of the Act. In this regard, he also made necessary endorsement in the grounds of appeal. Accordingly, the said ground is dismissed as withdrawn. 4. The remaining ground relates to the method of computation of disallowance made u/s. 14A of the Act. The Ld. Counsel for the assessee submitted that the Assessing Officer has included the profit on sale of investments amounting to ₹ 67.25 crores as exempted income and accordingly, computed the disallowance u/s. 14A of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not object to the factual facts submitted by the Ld. AR. We also notice that the Ld. CIT(A) has followed the decision rendered by the Tribunal dated 08-08-2007 in I.T.A. No. 861/Coch/2005 relating to the assessment year 2002-03, wherein the Tribunal has held as under:- In our further considered opinion, the bonafide contribution made by the assessee as an employer to the fund set up as a part of the agreement between the assessee bank and its executive employees is not by the sub-section (9) of section 40A. The details of any decision of higher judicial forum on the above said issue either affirming or reversing or modifying the above view were not put before us. Under these circumstances, in our views, the Ld. CIT(A) was justif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to it due to the delay in its payment after the lapse of statutory period. In the facts of that case, this Court had come to the conclusion that there was an inordinate delay on the part of the Revenue in refunding certain amount which included the statutory interest and therefore, directed the Revenue to pay compensation for the same not an interest on interest. 8. Further it is brought to our notice that the Legislature by the Act No. 4 of 1988 (w.e.f. 01.04.1989) has inserted Section 244A to the Act which provides for interest on refunds under various contingencies. We clarify that it is only that interest provided for under the statute which may be claimed by an assessee from the Revenue and no other interest on such statutory in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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