TMI Blog2013 (7) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... ide his order dated 30-06-2008 for assessment year (AY) 2002-03. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of Assessing Officer (AO) rectifying the mistake vide order passed u/s. 251/154/154/154/251/143(3) of the Act dated 22-04-2008 by which nterest on unpaid interest already granted to him. By this, the assessee has raised following two grounds:- 1. That, since there was no apparent mistake in the order passed u/s. 251/154/154/154/251/143(3) dt. 22.4.08, the Ld. AO erred in rectifying the said order in terms of Sec. 1154 of the I.T. Act and passing a revised order dt. 30.6.08 in which he wrongly withdrew interest on unpaid interest already granted by him to the appellant as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce-tax, the question of granting interest u/s. 244A(1) after that date does not arise. After adjusting the excess amount of refund over TDS Advance-tax i.e. A from the interest due to the assessee i.e., B , there will be net refund of ₹ 6,50,00,908/-/ 4. Aggrieved, assessee preferred appeal before CIT(A), who without a speaking order adjudicated the issue vide para-5 and 5.1 of his order, which reads as under:- 5. Ground No.1 and 2 are general in nature and hence does not require any adjudication. Ground No.3 and 4 are interrelated. The assessee has submitted that:- i) the AO has erred in holding that grant of interest on unpaid interest was contrary to the provisions of Sec. 244A(3) of the I.T. Act. ii) the AO er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the delay being justifiable and even if the Revenue taken an erroneous view of the law, that cannot mean that the withholding of monies is justifiable or not wrongful . There is no exception to the principle for an allegedly justifiable withholding. When the claims of the authority are found to be unsustainable or erroneous by the courts it follows that the authority has acted wrongfully in the sense of not in accordance with law and compensation to the party deprived must follow. And finally Hon ble Supreme Court allowed the interest by holding as under:- Held accordingly, revising the decision of the High Court, that the assessee was entitled to interest on the amounts of interest paid under section 214 and/or section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 is keeping in view the judgment of this Tribunal in ITA No. 585/K/2006 for the AY 2000-01 dated 28.02.2007 in its own case even the dispute regarding grant of interest on unpaid interest is covered by the decision of Hon ble Supreme Court in the case of Sandvik Asia Ltd. (supra). Even on merits, Hon ble M.P. High Court in the case of CIT Vs. H.E.G Ltd. (2009) 310 ITR 341 has held that the provisions of section 244(1A) and 244A are almost similar and in case of granting of interest on unpaid interest is applicable in terms of section 244A of the Act. This decision of Hon ble M. P. High Court in the case of H.E.G. Ltd. was approved by Hon ble Supreme Court by dismissing the appeal of the department as reported in 324 ITR 331. In such circu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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