TMI Blog2014 (6) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax having jurisdiction to entertain its application for interest on refund u/s 244A of the Act, rather than moving an application u/s 154 before the AO at the first place - there is no inherent right of appeal - Appeal is a creature of statute and when the statute has provided a specific appeal provision for the relief claimed, then only that forum can exercise jurisdiction of appeal and no other. CIT (A) have erred in upholding the order of the AO - the AO withdrew his own order passed u/s 154 of the Act, for the simple reason that the application/appeal for interest on refund cannot be entertained by the AO, an application for refund of interest will lie only before the jurisdictional Chief Commissioner or the CIT - the AO’ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t claim the deduction u/s 80-I and so was not allowed deduction in that financial year. However, it had claimed deduction u/s 80HHC in that F.Y. and that was allowed to it. The AO completed the assessment on the basis of return filed by the assessee, where, no deduction u/s 80-I was claimed and so it was not granted. Thereafter, the assessee moved a revision application u/s 264 claiming the deduction u/s 80-I of the Act, before the Commissioner of Income Tax- 1, New Delhi, although the case was completed by the AO under the charge of CIT, Meerut. Admittedly, there was delay in filing of revision application u/s 264 of the Act, which was attributable mainly on account of the fact that the assessee only at a later stage, could understand abou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest passed u/s 154 of the Act by the AO before the CIT (A). On the said appeal, the ld. CIT (A) held that since the CIT has passed order u/s 263, the appeal preferred before it has become infractuous and did not pass any order on merit and dismissed the appeal. 5. Aggrieved by the order of the ld. CIT(A), the assessee preferred an appeal before the ITAT; and the Tribunal clubbed the same with the appeal of the assessee against the order of the CIT u/s 263 passed vide order dt. 31.01.2005, wherein, he cancelled the order of the AO granting interest on refund. The Tribunal set aside the order passed by the CIT u/s 263 and directed the ld. CIT (A) to pass orders on merits. 6. As per the direction of the Tribunal, the CIT (A) has d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.3.2 More importantly; once assessee s claim for interest u/s 244A had been rejected; subsequent application u/s 154 dated 24.02.2003 tantamounted todispute, which could not be adjudicated by the AO. The AO could have granted interest u/s 244A, only after referring the dispute to CIT/CCIT. But this was not done, as is clear from the records. So, the obvious conclusion is that the order u/s 154 dated 28.02.2003 was illegal and void. 7.3.3 Now, to rectify such a void order; remedial action was apparently taken by way of initiation of action u/s 263. This order u/s 263 was finalized on 31.01.2005. It is important to note that during hearings u/s 263; appellant did not inform the CIT that an order u/s 244A. Same was the purpose of CIT s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gular assessment; (b) in any other case, such interest shall be calculated at the rate of [one-half per cent] for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation.-For the purposes of this clause, date of payment of tax or penalty means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 156 is paid in excess of such demand (2) 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 peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax or Commissioner of Income Tax having jurisdiction to entertain its application for interest on refund u/s 244A of the Act, rather than moving an application u/s 154 before the AO at the first place. It may be remembered that there is no inherent right of appeal; Appeal is a creature of statute and when the statute has provided a specific appeal provision for the relief claimed, then only that forum can exercise jurisdiction of appeal and no other. 10. We find that the ld. CIT (A) have erred in upholding the order of the AO wherein, the AO withdrew his own order passed u/s 154 of the Act, which is erroneous, for the simple reason that the application/appeal for interest on refund cannot be entertained by the AO, whereas, an appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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