2011 (9) TMI 21

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....ut appreciating that the provisions of Section 234D are procedural and compensatory in nature and as such can be applied to proceedings of earlier assessment years pending as on 01-06-2003 ? "   2. By consent, all the appeals are taken up for final hearing. 3. In all these cases, in the assessment orders passed under Section 143(3) r/w 147 of the Income Tax Act, 1961 ('the Act' for short), the assessing officer disallowed the benefit of Article 8 of the Double Taxation Avoidance Agreement (DTAA) between India and USA to the assessee. The appeals filed by the assessee were allowed by the CIT(A) by holding that the assessee is entitled to the benefit of Article 8 of DTAA. Challenging the aforesaid order, the revenue filed appeals befor....

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....e of Ekta Promoters (P) Ltd. (supra). Challenging the aforesaid order, the revenue has filed the present appeals.   6. Mr. Suresh Kumar, learned counsel appearing on behalf of the revenue submits that as per the explanation to Section 234D, the assessment made for the first time under Section 147 shall be regarded as a regular assessment. In the present case, the assessments are made under Section 147 read with Section 143(3) of the Act and, therefore, Section 234D would be applicable to the facts of the present case.   7. Section 234D of the Act (to the extent relevant), reads thus:- Interest on excess refund. 234D. (1) Subject to the other provisions of this Act, where any refund is granted to the assessee under sub-section (....