TMI Blog2017 (10) TMI 1534X X X X Extracts X X X X X X X X Extracts X X X X ..... venue is directed to pay compensation in the shape of simple interest on the amount due at the rate at which the assessees herein otherwise would have been entitled to, on the delayed payment of excess tax paid. Appeal allowed - decided in favor of assessee. - ITA Nos. 277 to 279/Chd/2017 - - - Dated:- 31-10-2017 - Shri Sanjay Garg, Judicial Member And Dr. B.R.R. Kumar, Accountant Member Appellant By: Shri Vishal Mohan Respondent By: Sh. Manjit Singh ORDER Sanjay Garg, The above captioned appeals have been preferred by the same assessee for different assessment years against the common order of Commissioner of Income Tax (Appeals) [hereinafter referred to as CIT(A) ], Faridabad dated 5.10.2016 2. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid judgment has been misquoted and misinterpreted by the assessees and also by the Revenue. They are of the view that in Sandvik case (supra) this Court had directed the Revenue to pay interest on the statutory interest in case of delay in the payment. In other words, the interpretation placed is that the Revenue is obliged to pay an interest on interest in the event of its failure to refund the interest payable within the statutory period. 7. As we have already noticed, in Sandvik case (supra) this Court was considering the issue whether an assessee who is made to wait for refund of interest for decades be compensated for the great prejudice caused to it due to the delay in its payment after the lapse of statutory period. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee from the Revenue, and no other interest on such statutory interest. 10. At this stage, we deem it appropriate to reproduced the relevant provisions of section 244 A of the Act. Interest on refunds. 244A. (1) Where refund of any amount becomes due to the assessee under this Act, he shall, subject to the provisions of this section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely :- (a) . 11. Now what has been held by larger Bench (three judges Bench) of thee Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flluro Chemicals (2014) 1 SCC 126 (SC) is that the assessee is entitled to interest on the refund of any amount which becomes du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 45,73,528. The tax paid after original assessment was ₹ 1,71,00,320. The total of TDS amounting to ₹ 45,73,528 plus tax paid after original assessment of ₹ 1,71,00,320 stood at ₹ 2,16,73,848. In other words, the total tax paid had two components, viz., TDS + tax paid after original assessment. The respondent was entitled to the refund of ₹ 2,16,73,848 (consisting of ₹ 1,71,00,320 and ₹ 45,73,528 which payment was made after 57 months and which is the only item in dispute). 7. The assessee claimed statutory interest for delayed refund of ₹ 45,73,528 for 57 months between April 1, 1993 and December 31, 1997 in terms of section 244A of the Income-tax Act. 8. Therefore, this is not a case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stage, the Ld. AR of the assessee has again brought our attention to the relevant wording in section 244A of the Act and has pointed out that the Legislature has not used the words refund of excess tax paid or the principle amount of tax paid ; the words used by the legislature are any amount . The Ld. Counsel for the assessee has, therefore, stressed that the meaning of the words any amount not only includes within its scope and ambit, the principle amount due but also the interest element which remains unpaid on the date of issue of refund. The Ld. counsel, while relying upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. H.E.G. Ltd (supra), has submitted that when the Revenue does not pay full amount of ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arger Bench of the Hon'ble Supreme court in the case of CIT Vs. H.E.G. Ltd. (supra) has defined the term refund of any amount becomes due to the assessee and has held that on the date of payment of the refund along with interest, the withheld or the unpaid amount on the said date becomes amount due to the assessee upon which the assessee is entitled to interest u/s 244A of the Act from the date of withholding till the date of payment. The Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flluro Chemicals (2014) 1 SCC 126 (SC) has also held that in case of inordinate delay in the payment of interest, the Revenue can be directed to pay compensation for the same by way of interest. 15. In the case in hand also, there is an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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