TaxTMI 
TaxTMI 
TaxTMI 
2015 (2) TMI 812
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....assessee in accordance with law. Aggrieved by the order of the learned Tribunal the Revenue has come up in appeal. Mr. Dutt, learned advocate appearing for the appellant, submitted that the sole question for determination is whether an appeal lies against an order refusing to grant interest under section 244(1A) of the Act. He drew our attention to section 246 of the Act. The case before us relates to the assessment year 1986-87. He submitted that an order passed under section Page No : 0406 237 of the Act refusing to pass an order granting refund is appealable but an order refusing to grant interest under section 244(1A) of the Act is not appealable. He contended that an appeal is a statutory remedy. Unless the statute provides for suc....
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....s paid prior to October 1, 1975, and also because the applicability of that sub-section turns upon the language employed therein, viz., 'such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which the assessee is liable to pay as tax'" He submitted that the hon'ble Supreme Court had made it clear that their Lordships did not consider the question as regards under section 244(1A) of the Act. He, therefore, contended that the learned Tribunal was evidently mistaken in proceeding on the basis that the hon'ble Supreme Court did not disapprove the views taken by the Madras High Court or the Bombay High Court whereas the fact is that the hon'ble Supreme Co....
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....id order of the Commissioner of Income-tax (Appeals) the Assessing Officer once again exercised jurisdiction under section 143(3) read with section 251 of the Act and passed an order granting refund but no order for payment of interest was passed nor did he advert to that question at all. It is not in dispute that interest in such a case is payable statutorily under section 244(1A) which provides as follows : "(1A) Where the whole or any part of the refund referred to in sub- section (1) is due to the assessee, as a result of any amount having been paid by him after the 31st day of March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this A....
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....ground. However, it is noted that the refund has not arisen as a result of giving of appeal effect. The refund results because of adjustment of certain earlier refunds in earlier years. In such circumstances, in my opinion, the ground of appeal is not acceptable." It is against this order dated March 29, 1996, that an appeal was preferred by the assessee before the learned Tribunal which resulted in the impugned order directing the Assessing Officer to allow interest in accordance with law. We are unable to see how can it be said that the appeal preferred by the assessee which was dismissed by the order dated March 29, 1996, was not an appeal against an order passed under section 143(3) of the Act. The Assessing Officer could not have exe....
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....ed that an appeal against an order passed under section 143(3) is permissible. It is altogether a different matter that the entitlement to interest arises out of section 244(1A) of the Act. A civil court may pass or refuse to pass an order for payment of pendentelite interest under section 34 of the Code of Civil Procedure. But it cannot be contended that the decree is one passed under section 34 of the Code of Civil Procedure. We are as such of the opinion that the learned Commissioner of Income-tax fell into a grievous error in proceeding on the basis that it was an appeal against an order refusing to grant interest under section 244(1A) of the Act. The appeal was an appeal against the order of assessment under section 143(3) of the Act i....