TMI Blog2019 (7) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... directions of the Tribunal. The question whether the interest is or is not payable was already decided by the Tribunal. Undoubtedly, if the Department had any legal dispute with the decision of the Tribunal, it was always open to the Department to challenge the same in accordance with law. Department has infact exercised such option by first filing an application for rectification before the Tribunal and when such rectification application came to be dismissed, by filing income tax appeal before the High Court. We are informed such appeal is pending. Limited role of the AO was to implement the directions of the Tribunal. In the process, in our opinion, he exceeded his brief virtually coming to the conclusion that the Tribunal was not ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For the assessment year 1994-95, the question of correct computation of interest payable under section 244A of the Income Tax Act, 1961 ( the Act for short) on the petitioner s claim of refund reached the Income Tax Appellate Tribunal ( Tribunal for short). The Tribunal by an order dated 16th June, 2017 gave certain directions to the Assessing Officer to compute and pay such interest. Relevant portion of this order reads as under:- 4. Under this issue the contention of the assessee is that the interest u/s.244A of the Act was not properly calculated and refunded in accordance with law settled in by the Hon ble Supreme Court in case titled as CIT Vs. H.E.G. Ltd. 324 ITR 331 and Hon ble Delhi High Court in case titled as Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tical purpose. 3. Pursuant to this order of the Tribunal thus, the Assessing Officer was required to pay interest to the petitioner in terms of the law laid down by Supreme Court in case of CIT Vs. H.E.G. Limited 324 ITR 331 and has further followed and expanded by Delhi High Court in case of India Trade Promotion Organisation Vs. CIT 361 ITR 646. 4. The Assessing Officer passed his impugned order pursuant to such directions of the Tribunal. In such order he did not agree with the contention of the assessee that interest as per the said decision of the Delhi High Court in case of India Trade Promotion Organization (supra) was outstanding and payable. He referred to the relevant portion of the judgment of the High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent from the case of India Trade Promotion Organisation (supra) considered by Hon ble Delhi High Court. After issue of any part refund, principal part refunded is adjusted against the total principal outstanding and any subsequent interest u/s 244A is computed on the balance principal outstanding. This working also ensures that interest component is not withheld indefinitely and whenever any principal amount is paid the corresponding interest is also paid. 2.6 Accordingly, the above principle was adopted in granting interest to the assessee u/s 244A of the Act of ₹ 283,71,61,850/- in the order passed u/s 154 of the Act dated 23.07.2012 for A.Y. 1994-95 and the assessee is not entitled for any further interest u/s 244A o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer has applied correct principles of law and come to the conclusion that no further interest is payable to the petitioner. 7. In the present case, the Tribunal has already examined the question of interest payable to the petitioner under Section 244A of the Act. The decision of the Tribunal lays down certain parameters for payment of such interest. We have reproduced the relevant portion of the order of the Tribunal. As per this order the Assessing Officer was required to compute the interest under section 244A of the Act following the principles laid down by the Delhi High Court in case of India Trade Promotion Organisation (supra). It was not open for the Assessing Officer thereafter to dissect the ratio of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relegating a litigant to appeal remedy will be wholly futile and in facts of the present case also lead to undue hardship. 10. Under the circumstances, impugned order dated 15th November, 2018 is set aside. The Assessing Officer is directed to compute the interest payable to the petitioner under section 244A of the Act by applying the principles laid down by the Delhi High court in case of India Trade Promotion Organisation as directed by the Tribunal. This shall be done within a period of six weeks from the date of copy of the receipt of this order. Before closing we clarify that nothing stated in this order shall prejudice the Department in pursuing to its Income Tax Appeal assessment order passed by the Tribunal and int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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