TMI Blog2015 (9) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... (1A), in light of the decision by this Court in Gujarat Fluoro case (2013 (10) TMI 117 - SUPREME COURT ) wherein held 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 interest, in our considered opinion, the impugned judgment and order requires to be set aside and the matter be remanded back to the High Court for re- consideration of the stand of the assessee as well as the Revenue once over again. - Decided in favour of revenue for statistical purposes. - CIVIL APPEAL NO. 3507 OF 2014 (Arising out of S.L.P.(C) No. 11406 of 2008) - - - Dated:- 26-2-2014 - MR. H.L. DATTU AND MR. S.A. BOBDE, JJ. ORDER 1. Delay condoned. 2. Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce at the rate of 30 per cent on the gross amount under Section 195 of the Income Tax Act, 1961 (for short, the Act ) and paid ₹ 34,22,900/- towards tax. Subsequently, in view of the amendment to Section 10(6A) of the Act by Finance Act, 1983 with effect from 01.04.1984, since no grossing of tax was required to be made on payment to the non-resident company under the agreement approved by the Government of India, the assessee claimed refund. 7. The Income Tax Officer, Baroda, by its order dated 30.11.1990 granted a refund of ₹ 10,26,868/-. Further, the assessee by its letter dated 17.01.1991 requested the Income Tax Officer, Baroda, Gujarat to grant interest on the excess amount of tax so refunded. As there was no response ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax and the Board, respectively and sought for a writ of mandamus directing the Revenue to award compensation by way of interest on the amount of refund of tax for period from 01.07.1987 to 13.11.1990. The High Court has primarily relied upon the observations made by this Court in Sandvick Asia Ltd. v. Commissioner of Income Tax Ors. (2006) 280 ITR 643 and concluded that the assessee is entitled to compensation by way of interest for the delayed payment of amounts refunded by the Revenue which were wrongfully withheld and therefore, set aside the letters of authorities below impugned therein and directed the Revenue to grant compensation by way of interest at the rate of 9% per annum on the amounts refunded and further, to make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticed that there was delay of various periods, ranging from 12 to 17 years, in such payment by the Revenue. This Court had further referred to the several decisions which were brought to its notice and also referred to the relevant provisions of the Act which provide for refunds to be made by the Revenue when a superior forum directs refund of certain amounts to an assessee while disposing of an appeal, revision etc. 5. Since, there was an inordinate delay on the part of the Revenue in refunding the amount due to the assessee this Court had thought it fit that the assessee should be properly and adequately compensated and therefore in paragraph 51 of the judgment, the Court while compensating the assessee had directed the Revenue to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 interest. 14. Since the High Court has primarily relied upon Sandvick Asia case (supra) and directed the Revenue to pay interest on the amounts refunded as provided for under the provisions of Section 244(1A), in light of the decision by this Court in Gujarat Fluoro case (supra), in our considered opinion, the impugned judgment and order requires to be set aside and the matter be remanded back to the High Court for re- consideration of the stand of the assessee as well as the Revenue once over again. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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