2007 (5) TMI 150

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....2007 and 172 of 2007 as common questions have been raised by the Revenue, under section 260A of the Income-tax Act, 1961, (for short "the Act"). The questions raised by the Department read as follows : "(1) Whether the Income-tax Appellate Tribunal was justified in holding that section 237 of the Income-tax Act was applicable in view of the fact that the Assessing Officer was not satisfied with t....

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....ayment was not made by the assessee before the due date with the result the Assessing Officer made an addition of the amount claimed as gratuity payment. This addition was upheld by the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal, but on the assessee approaching the Central Board of Direct Taxes under section 119(2)(c) which authorises the Board to relax the requirem....

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....of the Act and interest thereon under section 244A(1). Though the Assessing Officer declined the request of the assessee for payment of interest on the said excess amount refunded to the assessee, the Commissioner of Income-tax (Appeals) accepted the claim of the assessee and on appeal, the order of the Commissioner of Income-tax (Appeals) was maintained by the Income-tax Appellate Tribunal. It is....

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....of the amount and that the amount has been paid beyond the period prescribed therefore. The Central Board of Direct Taxes has condoned the delay with the result it could not be said that the gratuity payment did not qualify for deduction from the income of the assessee. In this context, if the amount was refunded it was also necessary to pay interest under section 244A(1). The Commissioner of Inco....