TMI Blog2008 (12) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... r the appellant. Sumit Nema and Mukesh Agrawal for the respondent. JUDGMENT The judgment of the court was delivered by DIPAK MISRA J. - Regard being had to the similarity of the substantial question of law involved in these appeals preferred under section 260A of the Income-tax Act, 1961 (or brevity "the Act"), they were heard analogously and are being disposed of by a singular order. For the sake of clarity and convenience, the facts in MAIT No. 58 of 2004 are adumbrated herein. 2. In these appeals, the following substantial question of law is involved: "Whether the Tribunal is justified in holding that the assessee is entitled to interest even on the amount of interest allowed or allowable under section 244A when sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income-tax (Appeals) to delete the addition of Rs. 1,46,623 on account of interest and service charges on terms loans and pre-operative expenses. With regard to the claim under section 80HH, the appellate authority directed the Assessing Officer to allow the deduction on the amount of Rs. 3,00,75,391. Thus, the Commissioner of Income-tax (Appeals) allowed the appeal in part. Being aggrieved with the aforesaid order, the assessee as well as the Revenue preferred an appeal before the Income-tax Appellate Tribunal. The Appellate Tribunal confirmed the decision of the Commissioner of Income-tax (Appeals) and, accordingly, dismissed the appeal of the assessee and partly allowed the appeal of the Revenue. Though many a ground was urged, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. per annum on the amount of refund due from the date immediately following the expiry of the period of three months aforesaid to the date on which the refund is granted. (1A) Where the whole or any part of the refund referred to in sub-section (1) is due to the assessee as a result of any amount having been paid by him after the 31st day of March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub-section (1) on the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee under this Act." In this context, we may profitably refer to the decision rendered in CIT v. Goodyear India Ltd. [2001] 249 ITR 527 (Delhi) wherein it was held as under (page 532): "Section 244 deals with interest on refund where no claim is needed. Sub-section (2), inter alia, provides that where a refund is due to the assessee, 'in pursuance of an order referred to in section 240' and the Assessing Officer does not grant the refund within the stipulated time, the Central Government is required to pay simple interest at the stipulated rate. Section 240 deals with refund on appeal, etc. This provision clearly lays down that where as a result of any order passed in appeal or other proceedings under this Act, refund of any amount bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra Doshi [2002] 254 ITR 606 (SC), a three-judge Bench of the apex court affirmed the decision of the High Court where interest on interest was granted. 11. In Sandvik Asia Ltd. v. CIT [2006] 280 ITR 643 (SC), it has been held as under (page 671): "In our view, the Act recognizes the principle that a person should only be taxed in accordance with law and hence where excess amounts of tax are collected from an assessee or any amounts are wrongfully withheld from an assessee without authority of law the Revenue must compensate the assessee. At the initial stage of any proceedings under the Act any refund will depend on whether any tax has been paid by an assessee in excess of tax actually payable by him and it is for this reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 233 ITR 370, has also interpreted the phrase 'any amount' in the same manner when considering the provisions of section 244(1A) of the Act, which also uses the same phrase in the context of interest payable by the Revenue. In express terms the court held that the expression referred not only to the tax but also to interest. The court agreed with a similar view taken by the Kerala High Court in the case of Ambat Echukutty Menon [1988] 173 ITR 581. Both these were cases where the court was called upon to decide whether further interest was payable by the Revenue on interest which had to be repaid to the assessee. In our opinion, the appellant is entitled to interest under section 244 and/or section 244A of the Act in accordance with the ter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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