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TMI Blog2017 (10) TMI 1534X X X X Extracts X X X X X X X X Extracts X X X X ..... arate applications for condonation of delay have been filed. In view of the submissions made in the applications and considering the shortness of the period of delay, the delay in filing the present appeals is hereby condoned. 3. At the outset, the representatives of the parties have submitted that the facts as well as issue involved in these appeals are identical to that of the case of M/s Ambuja Darla Kashlog Mangoo Transport Cooperative Society Ltd, Solan (ITA Nos. 280 to 283/Chd/2017). It is seen that the said appeals have come up for hearing before the Coordinate Bench of the Tribunal on 17.8.2017 (wherein one of us - Judicial Member being party to that order also). The Coordinate Bench of the Tribunal after deliberating on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y on the part of the Revenue in refunding certain amount which included the statutory interest and therefore, directed the Revenue to pay compensation for the same not an interest on interest. 8. Further it is brought to our notice that the Legislature by the Act No. 4 of 1988 (w.e.f. 01.04.1989) has inserted Section 244A to the Act 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." 9. A perusal of the aforesaid observation of the Hon'ble Supreme Court, in our view, reveals that where the Revenue fails to pay interest on the statutory interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h) of the Hon'ble Supreme Court in the case of 'CIT Vs. H.E.G. Ltd' (supra) has answered the question "what is the meaning of the words 'refund of any amount becomes due to the assessee' in section 244A?" 12. The Hon'ble Supreme Court held that the interest component will partake the character of 'amount due' u/s 244A. It becomes integral part of the amount due which becomes due and payable and that it cannot be said to be a case of claiming interest on interest. The relevant part of the decision of the Hon'ble Supreme Court in the case of CIT Vs. H.E.G. Ltd is reproduced as under:- "4. In Income-tax matters, it is well settled that if the question is not properly framed, then, at times, confusion arises resulting in wrong a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Department. 9. The next question which we are required to answer is - what is the meaning of the words " refund of any amount becomes due to the assessee" in section 244A ? In the present case, as stated above, there are two components of the tax paid by the assessee for which the assessee was granted refund, namely TDS of Rs. 45,73,528 and tax paid after original assessment of Rs. 1,71,00,320. The Department contends that the words "any amount" will not include the interest which accrued to the respondent for not refunding Rs. 45,73,528 for 57 months. We see no merit in this argument. The interest component will partake of the character of the "amount due" under section 244A. It becomes an integral part of Rs. 45,73,528 which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to the assessee upon which the assessee is entitled to interest as per section 244A of the Act. The Ld. counsel has further submitted that this type of contingency arises only when the interest is not refunded along with tax refund, out of total refundable due to the assessee and that the outstanding amount thus partakes the character of the remaining amount due upon which the simple interest is payable as per the provisions of section 244 A of the Act. He has further submitted that there is no other provision under the Act under which Assessing officer can be liable to pay interest when part payment is made and the remaining amount on account of interest accrued is not paid. The Assessing officer, in such circumstances, may delay the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of 'CIT Vs. Gujarat Flluro Chemicals' (2014) 1 SCC 126 (SC), the assessee is otherwise entitled for the compensation from the Revenue for inordinate delay in the payment of interest. We accordingly direct the Revenue to pay compensation in the shape of simple interest on the amount due at the rate at which the assessee otherwise would have been entitled to, on the delayed payment of excess tax paid. In view of this, these appeals of the assessee are treated as allowed. 16. In the result, both the appeals preferred by the assessee are allowed." 4. Since the facts as well as issue involved in these appeals are identical to that of the case of M/s Ambuja Darla Kashlog Mangoo Transport Cooperative Society Ltd, Solan (ITA Nos. 280 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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