TaxTMI 
TaxTMI 
2014 (5) TMI 437
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.... have led to the filing of the appeal are that the assessee filed a return of income tax on 26.08.1985, declaring an income of Rs.47,200/-. The return was revised to an income of Rs.49,620/- on 28.10.1986 but a protective assessment was made on 19.02.1988 treating the income as Rs.1,67, 534/-. A demand was consequently raised for Rs.1,13,163/-. An appeal filed by the assessee was dismissed by the Commissioner of Income Tax (Appeals), on 26.09.1988. The Income Tax Appellate Tribunal, vide order dated 07.09.1991, set aside the order passed by the Commissioner of Income Tax (Appeals) and restored the appeal to the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) upheld the protective assessment but reduced the qu....
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.... an assessee pursuant to an order of assessment has been reduced in appeal or any other proceeding. In such a case, an excess amount of tax or penalty paid by the assessee will have to be refunded and the Central Government has to pay interest on the excess amount from the date on which such amount was paid to the date on which the refund was granted. Of course, there can be no question of paying interest both under section 214(IA) and section 244(IA) simultaneously. The rate of interest being the same under both the provisions, there would be no difference in the actual amount of interest payable whichever provision is applied." 5.1. From the above, it would be clear that the interest under section 244(IA) would be payable by taking into ....
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....r assessment or after giving effect to the orders or the Tribunal, interest under section 214 & 244 (IA) granted to the assessee was not due at all and had to be recovered from the assessee. In the instant case also, there was no interest due after the final appeal effect given by the A.O. Therefore, the A.O. was justified in withdrawing interest and to recover the same from the assessee. A similar issue has also been decided by the Hon'ble jurisdictional High Court in the case of C.I.T. Vs. M/s Hansa Agencies Pvt. Ltd. (1998) 234 ITR 271, by following the judgment of the Hon'ble Supreme Court in the case of Modi Industries Ltd. Vs. CIT (1995) 216 ITR 759 (SC0 (Supra). The Hon'ble High Court of Punjab & Haryana held that the ....
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....scussion and keeping in view the ratio laid down by the Hon'ble Supreme Court in the case of Modi Industries Ltd. and another Vs. CIT and another (Supra), by the Hon'ble Calcutta High Court in the case of "ANZ Grindlays Bank Plc. Vs. CIT" (1999) 157 CTR 161, 169 (Supra) and by the jurisdictional High Court in the case of CIT Vs. Hansa Agencies Pvt. Ltd. (1998) 234 ITR 271 (supra), we are of the opinion that the learned DCIT (A) had rightly confirmed the action of the A.O. in withdrawing the interest while giving effect to the appellate order. In that view of the matter, we do not see any valid ground to interfere with the findings of the learned DCIT (A) on this issue." Counsel for the assessee submits that as interest has been pai....
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.... heard counsel for the parties, perused the statutory provisions and the judgments referred to by counsel for the parties. The controversy, in the present appeal succinctly put, is whether the amount paid to the assessee as interest can be withdrawn under Section 244 of the Act, while giving effect to an appellate order which has led to variation of the amount? The Income Tax Appellate Tribunal has answered the question against the assessee after placing reliance upon a judgment of the Hon'ble Supreme Court in Modi Industries Ltd. and another Versus Commissioner of Income Tax and another case (supra), a judgment of the Calcutta High Court in "ANZ Grindlays Bank Pl. Vs. C.I.T." (1999) 157 CTR (Cal.) 161, 169, a judgment of this High Cou....