2000 (6) TMI 138

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....rest under s. 244(1A) of IT Act, 1961, on the amount of refund arises on account of waiver of interest under ss. 139(8) and 217 of IT Act." 3. The brief facts of the case are that in all these assessment years interest under ss. 139 and 217 was charged. However, the CIT, Jaipur, waived the interest charged under ss. 139 and 217 by an order dt. 28th Jan., 1993. Consequently the AO allowed the refund arising out of the interest payment. The assessee made a claim under s. 154 for allowing interest under s. 244(1A) on the refund which was refused by the AO on the ground that s. 244(1A) envisaged interest only on tax penalty and not on interest. As per definition given in s. 2(43), it is income-tax chargeable and does not include any interest. ....

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....1994) 209 ITR 456 (Guj); (5) CIT vs. Ambat Echukutty Menon (1988) 67 CTR (Ker) 287 : (1988) 173 ITR 581 (Ker); (6) Somany Pilkingtons Ltd. vs. IAC (1990) 34 ITR 531 (Del); (7) Suresh B. Jain vs. P.K.P. Nair & Ors. (1992) 194 ITR 148 (Bom); and (8) Bharat Commerce Industries Ltd. vs. CIT (1985) 45 CTR (Del) 1 : (1985) 153 ITR 275 (Del). And the Hon'ble Jurisdictional High Court decision in the case of CIT vs. Ayurved Sevashram Ltd. Therefore, the order of the Dy. CIT(A) allowing the interest on interest should be upheld. 7. We have heard the rival submissions of the parties and have perused the material available on record. We find that in a recent case decided by the Hon'ble Madras High Court in the case of CIT vs. Needle Industries (....