9911796707
TMI Blog2016 (12) TMI 1867X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 19.12.2007 in assessee's case for AYs 1984-85, 1985-86, 1987-88 & 1988-89 and refund together with interest thereon was granted to the assessee in all those assessment years. Thereafter a notice u/s 154 was issued on 28.03.2012 for rectifying the amount of interest payable/ paid to the assessee on the refund granted to it in all these four assessment years. The AO passed orders u/s 154 dated 31.03.2012 in all these years separately and raised the demand on account of excess payment made to it. 4. By the impugned order CIT(A) confirmed the action of the AO against which assessee is in further appeal before us. 5. Grievance of assessee in the assessment year 1984-85 pertains to granting of interest u/s.244(1A) on the account of refu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... While computing interest under section 214, care need to be taken for the amendments made in that provision. As per sub-section(1), the interest is payable on the advance tax that exceeds 'the assessed tax' for the period 1st April (next following the financial year in which advance tax was paid) to the date of regular assessment. Further Sub-section (1A) allows the reduction/ increase into such interest on account of appeal effect for relief I enhancement, as the case may be, on addition to the total income. But this subsection (1A) has been inserted w.e.f. 01.04.1985 and applicable for AY 1985-86 and onwards (till AY 1988-89). Prior to 01.04.1985, sub-section (1A) was all together different and as such reduction / increase of int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being so, sub-section (1A) which was introduced in section 214 will apply to the petitioner's case, for the assessment year 1982-83. 11. Respectfully following the above decisions of Hon'ble Bombay High Court, we do not find any merit in the order of the lower authorities for declining the claim of interest u/s.214(1A) for the assessment year 1984-85 under consideration. 12. Common grievance in all the years under consideration pertains to rate of interest payable as per the provisions of Section 214/244. 13. We have considered rival contentions and found that the CIT(A) had held that even though the provisions of section 214/244 were applicable the rate of interest given in 244A has to be considered for grant of interest on refund. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
