TaxTMI 
TaxTMI 
2013 (12) TMI 467
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....ssessment years. 2. In all these appeals, the common issue for adjudication is with regard to interest on interest on refund due to the assessee. The assessee had filed appeal before the CIT(A) inter-alia assailing the order of DCIT on the ground that while granting interest under section 244A less amount was granted to the assessee. The assessee had submitted detailed calculation of the interest for the respective assessment years. The contention of the assessee is that the assessee is entitled to interest on interest due in accordance with the judgement of the Hon'ble Supreme Court of India in the case of Sandvik Asia Ltd. reported as 280 ITR 643(SC). The CIT(A) while allowing this ground of appeal of the assessee directed the Asses....
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.... paid to the assessee should be first adjusted towards interest and excess thereof should be adjusted towards refund of advance tax paid if any. In order to support his contention, the A.R. relied on the order of the Hon'ble Supreme Court of India in the case of Sandvik Asia Ltd. Vs. CIT reported in 280 ITR 643 (SC). The A.R. also relied on the order of the coordinate Bench of the Tribunal in ITA Nos.213 to 215/Mds/2010 in the case of DCIT Vs. Bharat Overseas Bank Ltd. decided on 30.10.2012. 5. We have heard the submissions made by both the parties and have perused the orders of authorities below and the judgements/orders relied on by both sides. The Hon'ble Madras High Court in the case of M/s. Wheels India Ltd. (supra) relying on the j....
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....lity to pay interest. This stand taken by the respondents is discriminatory in nature and thereby causing great prejudice to lakhs and. lakhs of assesses. Very large number of assesses are adversely affected inasmuch as the Income Tax Department can now simply refuse to pay to the assesses amounts of interest lawfully and admittedly due to them as has happened in the instant case. It is a case of the appellant as set out above in the instant case for Assessment Year 1978-79, it has been deprived of an amount of Rs. 40 lakhs for no fault of its own and exclusively because of the admittedly unlawful actions of the Income Tax Department for periods ranging up to 17 years without any compensation whatsoever from the Department. Such actions and....
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.... of interest on interest does not arise. 12. For the reasons stated above, the substantial question of law raised in the appeal to the effect that whether the interest claimed on interest when there is no inordinate delay, is answered in affirmative and in favour of the Revenue. Accordingly, the appeals are allowed. There would be no order as to costs." 6. It is an undisputed fact that there has been delay in making refund to the assessee by the Department. As such the assessee is entitled to interest on delayed payment of refund as provided under section 244A. The Hon'ble Supreme Court of India in the case of Sandvik Asia Ltd. (supra) had granted interest on interest for the reason that only refund of excess tax was given to the asse....