Tribunal denies Assessee's appeal for interest on interest under Section 244A.

The Tribunal dismissed the Assessee's appeal, ruling it maintainable before the CIT(A). The Assessee's claim for interest on interest under Section 244A was denied as the AO had complied with previous directions by granting interest for the specified period. The Tribunal found no basis for additional interest on interest and distinguished the case from previous instances where such directions were given. The appeal was dismissed, and the Assessee's claim for interest on interest was rejected.

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Issues Involved:
1. Maintainability of the appeal filed by the Assessee before the CIT(A).
2. Entitlement of the Assessee to interest for delayed payment of interest (Compensation/interest on interest) under Section 244A of the Income Tax Act.

Issue-wise Detailed Analysis:

1. Maintainability of the Appeal:
The Assessee contended that the appeal before the CIT(A) was maintainable, relying on the decision of the Hon'ble Supreme Court in the case of Central Provisions Manganesa Ore Co. Ltd. The Tribunal found substance in this contention, holding that the order giving effect to the Tribunal's directions is in the nature of an order under Section 143(3) of the Act, which is appealable under Section 246(1) of the Act before the CIT(A). Thus, the Tribunal concluded that the appeal filed by the Assessee before the CIT(A) was maintainable.

2. Entitlement to Interest for Delayed Payment of Interest:
The Assessee argued that the AO did not grant interest as per the Tribunal's directions in ITA No. 5172/Del/2014 and claimed entitlement to interest on the belated payment of interest under Section 244A of the Act. The Assessee provided calculations showing interest on the refund amount of Rs. 93,44,160/- for the period from 01-06-2013 to 04-05-2018 at a rate of 0.5%, amounting to Rs. 28,03,248/-. The Assessee also relied on CBDT Circular No. 549 dated 31.10.1989 and several judgments, including its own case for the assessment years 2005-06 and 2009-10.

The Revenue contended that the AO had fully complied with the Tribunal's directions by granting interest under Section 244A for the period from 01.04.2003 to 24.03.2006, amounting to Rs. 93,44,160/-. The Revenue argued that the Tribunal's order did not direct the AO to grant interest on interest or compensation for belated payment of interest, and Section 244A does not provide for such interest on interest.

The Tribunal noted that the Assessee was due for interest for the period from 01/04/2003 to 24/03/2006, as directed by the Tribunal in ITA No. 5172/Del./2014. The AO had complied with this direction by granting interest on 04-05-2018. The Tribunal found no direction in the previous order to compute interest on interest or to pay compensation for late payment of interest. The Assessee had not challenged the previous order, which had attained finality. Therefore, the Tribunal held that the AO's compliance with the directions was correct, and the Assessee's claim for interest on interest was not justified.

The Tribunal also distinguished the present case from the Assessee's own case in ITA No. 5221 & 5222/Del/2016, where the Tribunal had specifically directed the AO to compute interest on late payment of interest. In the present case, there was no such direction in the previous order.

Conclusion:
The Tribunal dismissed the appeal of the Assessee, holding that the appeal before the CIT(A) was maintainable, but the Assessee was not entitled to interest on interest for the delayed payment of interest under Section 244A of the Act. The order was pronounced in the Open Court on 07th March 2022.

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