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TMI Blog2020 (11) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Tribunal 'B' Bench, Chennai ('the Tribunal' for brevity) for the assessment year 2007-08. 2.This appeal has been filed by raising the following substantial questions of law:- "1.Whether the Tribunal was right in law in holding that the interest under Section 244A of the Act is not payable on the amount determined as refundable (inclusive of interest up to that date) for the period for which there was a delay in payment of the amount to be refunded? and 2.Whether the Tribunal was right in law in holding that there is no inordinate delay in the grant of refunds?" 3.We have heard Mr.R.Vijayaraghavan, learned counsel appearing for the appellant and Mr.T.Ravikumar, learned Senior Standing Counsel appearing for the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 244A of the Act. 5.According to the assessee, this issue was not decided by the CIT(A) who proceeded only to consider the interest computed by the Assessing Officer. It appears that the assessee did not contest the quantum of interest which was computed but their plea was with regard to the adjustment of such interest. The assessee carried the matter by way of appeal to the Tribunal referring to Section 140A(1) and submitted that where the amount paid by an assessee under self assessment fall short of aggregate amount of tax and interest aforesaid, the amount paid shall first be adjusted towards the interest payable and the balance, if any, shall be adjusted towards the tax payable. The assessee would contend that the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Sandvik Asia Limited vs. Commissioner of Income Tax and others reported in (2006)2 SCC 508 on which reliance was placed by the Tribunal in the instant case and the Hon'ble Supreme Court clarified that in the case of Sandvik Asia Limited (cited supra), the Hon'ble Supreme Court was considering the issue as to 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 delay in its payment after the lapse of statutory period and on the facts of the said case, the Hon'ble Supreme Court came to the conclusion that there was an inordinate delay on the part of the Revenue in refunding certain amount, which included the statutory interest and therefore, direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the considered view that the matter should be remanded. 10.Accordingly, the appeal is allowed, the orders passed by the CITA() and the Tribunal are set aside only on the aspect indicated above and the matter is remanded to the CIT(A) to consider whether under explanation to Section 140A(1), it is stipulated where the amount paid by an assessee under self-assessment falls short of the aggregate amount of tax and interest aforesaid, the amount paid shall first be adjusted towards the interest payable and the balance, if any, shall be adjusted towards the tax payable. The remand to the CIT(A) is only on the aforementioned issue. Consequently, the substantial questions of law are left open. No costs. Consequently, connected miscellane ..... X X X X Extracts X X X X X X X X Extracts X X X X
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