2014 (1) TMI 1277

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....pellate authority for the assessment year (A.Y.) 2001-02 vide order dated 24.08.2009. 2.1 Explaining the background facts of the case, it was submitted by the ld. AR, the assessee's counsel, that vide his order dated 24.08.2009 the Assessing Officer (A.O.) gave effect to the order of the first appellate authority dated 20.03.2009, revising the income as initially assessed u/s.143(3) r.w.s. 147 vide order dated 26.12.2008. However, as would be apparent from the said order, as well as the income tax computation form (ITNS 150A) of even date, no interest u/s.244A of the Act stood allowed, even as there was a reduction in the assessed income, resulting in a refund, i.e., in addition to the refunds already granted. 2.2 The assessee preferred a....

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....late authority is an assessment order, so as to be covered u/s. 246(1)(c) of the Act, which is para materia to section 246A(1)(a). Its stands further explained that the provision of section 246 (c), reproduced therein, consists of two parts. The first part concerns the case where the assessee denies any liability to be assessed under this Act. The same was, therefore, found inapplicable in that case, which again involved a dispute in relation to interest granted by the Central Government u/s.214 of the Act, which is again akin to section 244A under which interest is being sought in the instant case. So, however, it was explained by the hon'ble court, relying on the decision in the case of Chockalingam (M.) and Meyappan (M.) vs. CIT [1963] 4....

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....of assessment in appeal on the ground of non- grant of or otherwise the quantum of the interest granted u/s.244A of the Act. The decision by the hon'ble jurisdictional high court in the case of Caltex Oil Refining (India) Ltd. (supra) relied upon by the assessee has been perused by us. In our view, the same squarely covers the issue at hand. The decision by the apex court in the case of Central Provinces Manganese Ore Co. Ltd. vs. CIT [1986] 160 ITR 961 (SC), wherein the issue involved was the denial to liability and/or charge of interest u/s.215 at a lesser amount, stands duly considered and distinguished by the hon'ble high court. It is in this context that its stands explained that clause (c) of section 246 is in two parts, so that the a....