Appellant wins appeal for interest on delayed payment.

The appellant challenged the order of the Ld. Commissioner of Income Tax (Appeals) regarding the denial of interest on unlawfully withheld amounts. The Tribunal allowed the appeal, granting the appellant interest on the delayed payment of interest, based on relevant legal instructions and court decisions. The appellant's appeals were both allowed, overturning the previous decisions.

---

---

Issues involved: Appeal against orders of Ld. Commissioner of Income Tax (Appeals) for assessment years 1997-98 & 1998-99, claiming interest on amount unlawfully withheld by the Department.

Summary:

Issue 1: Appeal against Ld. Commissioner of Income Tax (Appeals) order
- The appellant challenged the order passed u/s. 250 of the Income Tax Act by the Ld. Commissioner of Income Tax (Appeals), New Delhi, alleging it to be bad in law and wrong on facts.
- The Ld. Commissioner of Income Tax (Appeals) rejected the claim for interest on the amount unlawfully withheld by the Department, leading to the appellant being deprived of utilizing the said amount.
- The appellant reserved the right to add, alter, or vary any grounds at or before the time of hearing.

Issue 2: Claim for interest on unlawfully withheld amount
- The Assessing Officer determined a refund for the appellant, which was fully adjusted against the demand for the previous assessment year.
- The appellant sought interest u/s. 244A for the period until the refund was adjusted, but the application u/s. 154 was rejected as being time-barred.
- The Ld. Commissioner of Income Tax (Appeals) agreed that interest u/s 244A should have been granted, even without a specific claim by the appellant.
- The Ld. Commissioner of Income Tax (Appeals) declined to order interest on interest, citing a Supreme Court judgment.
- The appellant appealed against this order.

Judgment:
- The appellant presented relevant facts and relied on legal instructions and court decisions to support their claim for interest on the delayed payment of interest.
- The Tribunal noted the applicability of a Supreme Court judgment and a CBDT instruction in favor of the appellant's claim.
- Considering the precedent and legal provisions, the Tribunal allowed the appellant's appeal, granting them interest on the delayed payment of interest.
- As a result, both appeals filed by the Assessee were allowed.

Note: The judgment was pronounced on 20/1/2012 by the Appellate Tribunal ITAT DELHI.

---