TaxTMI 
TaxTMI 
1986 (12) TMI 84
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....however, set aside the issues relating to the determination of the ALV of the house, B-12, Greater Kailash New Delhi, as also deductibility of the interest paid to Sharma Estate Agency and Sharma Property Dealers. There was only one "other objection" before the Tribunal. That was with regard to the disallowance of interest paid to Bank of Baroda. On this point, the assessee's claim was rejected and the order of the authorities below confirmed. In other words, only part of the assessment as it stood after the first Appellate Authority's order was confirmed. The other part, i.e. relating to the determination of the annual value and allowability of interest payments to Sharma Estate Agency and Sharma Property Dealers came to be set aside for b....
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....he following additions : . . (i) higher rental value of free furnished accommodation 57,000 . (ii) interest to Sharma Estate and Property Dealer 13,360 73,360 . 87,846 or say . 87,850 Issue necessary forms. Allow credit for taxes paid and interest under s. 244(1A) as per law". The assessee accordingly, received refund of Rs. 14,542 as interest under s. 244(1A) which reads as under: "(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 21st March, 1975 in pursuance of any order of assessment of penalty and such amount of any part thereof having been found in appeal or other proceeding under this Act to be in excess of ....
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....42 originally allowed to the assessee under s. 244(1A). The Commissioner (A) noted that the ITO had not given any reason or justification of withdrawing the said interest allowed originally. He further held that even otherwise, the withdrawal was unjustified as the ITO had no power to withdraw interest already allowed under s. 244(1A) of the Act, He, therefore, directed that the assessee should be allowed the said interest refund of Rs. 14,542. Hence this appeal by the Revenue. 4. We may note here one more factual position. This is available at p. 1 of the assessee's paper book. This works out the income-tax which actually became payable by the assessee for this year ultimately after the aforesaid appellant order of10th Aug., 1984. It may ....
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.... Interest under s. 244(1A) could be determined only on the completion of the assessment following the appellate order because the interest element related to the difference between the tax already paid by the assessee and the tax that came to be determined as payable for the assessment year as a whole following the relevant appellate order. In other words, according to Shri Sharma, grant of interest under s. 244(1A) having been illegal and not authorised in law in first place, i.e. under the order of 24th Sept., 1982, necessary adjustment made therefor by the ITO in his order dt.28th Nov., 1983was in order and should have been confirmed by the Commissioner (A). For the assessee, strong reliance was placed on the order of the Commissioner (A....