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TMI Blog1987 (6) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... any. The ITO passed consequential order under section 250 of the Act on 3-8-81 and vacated the demand payable by the assessee. He indicated that tax and interest paid by the assessee under section 220(2) of the Act were refundable. The ITO further directed the office to issue refund order. 2. The assessee vide Its letter dated 26-11-81 requested the ITO for refund order, Further, the assessee requested the ITO to refund interest under section 244(1A) of the Act. By its letter dated 26th Nov., 1981 the assessee asked the ITO to pay interest at Rs. 52,874 under section 214(1A) of the Act. The ITO by his letter dated 2-12-81 intimated the assessee-company that no such interest can be granted because the order passed under section 104 cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, the CIT (Appeals) was correct in law in directing that the assessee was entitled to interest u/s. 244(1A) ? " 5. Shri M. Pal, the departmental representative, relying in CIT v. H.V. Mirchandani [1986] 161 ITR 800 (Kar.), urged that the order passed by the ITO under section 244(1A) was not appealable. His alternative argument was that the order passed under section 104 is not an order of assessment or penalty as required under section 244(1A) of the Act and, therefore, the assessee cannot be allowed any interest. He further relied in M.M. Parikh, ITO v. Navanagar Transport & Industries Ltd. [1967] 63 ITR 663 (SC). 6. Shri A.K. Gupta, the counsel for the assessee, on the other hand, filed a paper book giving various letters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by the assessee. The assessee subsequently wrote two letters requesting the ITO to allow interest under section 244(1A). The request of the assessee was rejected by the ITO and the same has been accepted by the CIT(A) in appeal. 8. The order passed by the ITO can only be amended either under section 154/155 or pursuant to the order of the Commissioner under section 263 or by the orders of the appellate authorities. The order once passed by the ITO cannot be rectified or revised by any other mode. The assessee made representation through its letters for rectification of the order by allowing it interest under section 244(1A) of the Act. Therefore, the representation of the assessee was under section 154 and that effect was desired by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on under section 154. The assessee did not come up in appeal against its first application. When its second application was not entertained, the assessee preferred an appeal before the CIT(A). Therefore, the case cited is not applicable to the facts of the present case. On the other hand, the case of the assessee is supported by the decision in S.C. Shah's case. The said case was noted by the Hon'ble High Court in H. V. Mirchandani's case ; but the High Court did not agree with the view of the Bombay High Court. The Bombay High Court in S.C. Shah's case has come to the conclusion that the order was appealable as well as the assessee was entitled for interest. After considering the distinguishing facts in H.V. Mirchandani's case, we follow t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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