TMI Blog2015 (11) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... er to take benefit out of that or not. Therefore, it is only when KVSS was promulgated, the assessee had an occasion to make a move and settle the dispute. So also the proceedings were locked up in different appellate forums. Therefore, there is no merit in the argument of the Revenue that the delay was caused by the conduct of the assessees. Therefore, Assessing Officer is directed to pay interest on refund of ₹ 40,442/- till 29.02.1988 and interest on refund of ₹ 11,138/- till 28.11.2000 as prayed. - Decided in favour of assessee. - ITA. No. 6277, 6282, 6286, 6288, 6287, 6289, 6290, 6294, 6295, 6300, 6301, 6302, 6303, 6328, 6330/Mum/2013, - - - Dated:- 29-9-2015 - SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI ASHWA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee trust derives 0.5% deferred share also as per Schedule-II before CIT(A) and forming part of trust deed of parent trust. 4. First issue is with regards to entitlement to interest on refund of ₹ 40,442/-. Assessee filed its return of income for A.Y. 1984-85 with concerned Income Tax Officer, Mumbai showing total income of ₹ 1,10,290/- and paid taxes thereon of ₹ 51,580/-. 4.1 Assessee was assessed to income of ₹ 1,10,290/- by Income Tax Officer vide his order dated 27.02.1987. The said income was assessed to tax on protective basis as the same was assessed to tax on substantive basis in case of main Trust, i.e. K. Kachradas Patel Specific Family Trust. The main trust was agitating the matter in higher jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 155(2) dated 28.11.2000 but interest on the same was not given and it was for the reason that assessee had filed rectification application. 4.5 Assessing Officer passed order u/s.154 dated 05.12.2012 rejecting the rectification application of assessee. Thus, Assessing Officer disallowed the claim of interest of assessee with following observations on page 2 of its order: Regarding the contention of the assessee that interest u/s.214/244A of the I.T. Act should be allowed on the refund amount, it may be observed that the refund has arisen on account of declaration made under the KVSS by the main trust, i.e. K. Kachradas Patel Specific Family Trust. By filing the declaration under KVSS, the main trust got the benefit of exemption from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter adjustment of ₹ 40,442/- alleged to has been refunded vide order dated 29.02.1988. However, no proof of such payment or adjustment has been provided to the assessee. Hence, Assessing Officer be required to provide proof of such payment or adjustment of ₹ 40,442/- to assessee or in alternative he may be instructed to refund the said amount to assessee. CIT(A) also observed that assessee has himself admitted that in income tax computation form, refund of ₹ 40,442/- has been shown to have been already refunded. Hence according to CIT(A), it was an admitted position that Assessing Officer has computed the refund amount and has agreed that such refund is payable to assessee. Thus, assessee may approach concerned Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt and Gujarat High Court has not only upheld the decision of Special Bench on the issue regarding grant of interest but Hon'ble High Court has also directed Revenue authorities that they should not drag the assesseess to unnecessary avoidable litigation. In spite of such a warning given by the Court to the Revenue, the Department again in the present cases has dragged these assessees in litigation for nongranting of the interest. The relevant observations of their Lordships of Gujarat High Court have already been reproduced. It is made clear that the facts of the present cases and those which were decided by the Special Bench and Hon'ble Gujarat High Court are pari-materia and this fact was not disputed by the Revenue. The AO has a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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