2009 (10) TMI 555

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.... appellant and the standing counsel appearing for the respondents.   3. The assessment made in the case of the assessee for the year 1983-84 was subjected to appeal which was decided in favour of the appellant. However, the Assessing Officer revised the assessment under section 143 of the Income-tax Act, 1961 (for short "the Act") and granted refund only in the previous year relevant for the year 1994-95. Along with the refund of excess tax paid, a further sum of Rs. 2,87,537 was granted towards interest payable under section 244(1A) of the Act. However, the entire interest was treated as income of the assessment year 1994-95 and assessed to tax. The assessee contested the liability for tax on the entire interest amount for the asse....

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....the decisions are in respect of the interest received under the Land Acquisition Act and the position declared by the Supreme Court is neutralised by an amendment introducing section 56(viii) and section 145A(b) introduced by the Finance (No. 2) Act, 2009 with effect from April 1, 2010. Since the amendment is prospective, the contention of counsel is that until then, the law declared by the Supreme Court should be followed. Since the decisions are not on interest on refund granted under the Income-tax Act, we have to consider the matter with respect to the statutory provisions.   5. We find that the assessee's eligibility for interest on refund arises only when the assessment is revised in terms of the appellate order by the Officer....