TMI Blog2014 (10) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... all the claims, which the assessee was entitled to regarding the refund, have merged into the orders of the Supreme Court and unless there was a specific direction issued by the Supreme Court for payment of interest on interest also, there was no occasion for the respondent to lay a claim – the Supreme Court has simply directed the authorities to extend the benefit by taking into account the principle laid down in Modi Industries Limited And Others Versus Commissioner of Income-Tax And Another [1995 (9) TMI 324 - SUPREME Court] - there was no direction for payment of interest on interest - notwithstanding the fact that there are precedents which held that an assessee is entitled to be paid interest on interest also, once the refund of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim for a sum of ₹ 38,90,824/- in the form of interest on interest, for the period between 1985 and 1997. The Income Tax Officer did not accede to the request of the respondent. The appeal filed by the respondent before the Commissioner (Appeals) was rejected. Thereupon, he filed I.T.A No. 735/Hyd/1998 before the Hyderabad Bench of the Income Tax Appellate Tribunal (for short, the Tribunal). The Tribunal allowed the appeal through order dated 18-06-2002. Hence, this further appeal under Section 260A of the Act by the Revenue. Heard Sri S.R. Ashok, learned Senior Standing Counsel for the appellant and Sri Vijay Ashrit, learned counsel for the respondent. The claim of the respondent for refund of amount paid as advance tax toget ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal took note of the judgment of the Supreme Court in CIT v. Narendra Doshi 254 ITR 606 and held that the respondent shall be entitled to be paid interest on interest. There are quite a large number of precedents rendered by the Supreme Court as well as the High Courts to the effect that the department is under an obligation to pay interest on interest also, if there was no basis for the delay in refund of the excess amount collected towards tax. We are in total agreement with that proposition. However, before a claim for interest on interest is allowed, the Court or the Tribunal for that matter, is required to take the relevant factors into account. If there was no dispute as to the refund of the excess amount collected as tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the interest on interest was claimed in that case are similar to those in the instant case. There also the claim of the assessee therein for refund and interest went up to the Supreme Court and the order similar to the one passed in Civil Appeal No. 284 of 1991 was also passed therein. As a matter of fact, Civil Appeal No. 284 of 1991 in relation to the claim of the respondent herein and Civil Appeal Nos. 2468, 2450 and 2689 of 1992 filed by the assesses in Sandvik Asia Ltd.,s case (supra) were part of the same batch and were disposed of through common order. In the second round of litigation in the instant case, claim was made for interest on interest. However, revision was filed against the order of the assessing authority rejecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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