TaxTMI 
TaxTMI 
TaxTMI 
2020 (10) TMI 501
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 246A. The action of the learned Commissioner of Income-tax is illegal, unjustified and arbitrary and against the facts of the case. Appropriate relief may please be granted. 2. In the facts and in the circumstances of the case and in law the learned Commissioner of Income-tax has erred in charging interest of Rs. 13,63,760 under section 220(2) in ITNS 150, i. e., section 143(3) read with section 260A while giving appeal effect of the order of the hon'ble Rajasthan High Court. The action of the learned Assessing Officer is illegal, unjustified and arbitrary and against the facts of the case. Relief may please be granted by quashing the said charge of interest of Rs. 13,63,760. 3. In the facts and in the circumstances of the case and in law the learned Commissioner of Income-tax has erred in charging interest of Rs. 4,43,248 under section 234D in ITNS 150, i. e., section 143(3) read with section 260A while giving appeal effect of the order of the hon'ble Rajasthan High Court. The action of the learned Assessing Officer is illegal, unjustified and arbitrary and against the facts of the case. Relief may please be granted by quashing the said charge of interest of Rs. 4,43,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Income-tax but after the order of this Tribunal granting the relief to the assessee, the Assessing Officer granted refund along with the interest. Since the issue was finally settled and decided by the hon'ble jurisdictional High Court, therefore, to give effect to the judgment of the hon'ble High Court, the Assessing Officer passed the giving effect order raising the demand along with the interest under sections 244A, 220(2) and 234D of the Income-tax Act. The details of the demand as well as interest raised by the Assessing Officer while passing giving effect order dated June 17, 2016 are as under : AY Balance demand Interest under section 244A Interest under section 220(2) Interest under section 234D Total payable 2002-03 11,18,684 1,86,479 13,63,760 4,43,248 31,12,171 2003-04 19,71,966 4,53,552 27,32,800 10,78,073 62,36,391 2004-05 11,52,998 2,36,362 28,42,211 - 42,31,571 Total 42,43,648 8,76,393 69,38,771 15,21,321 The interest under section 244A is the amount which was earlier paid by the Assessing Officer at the time of issuing the refund and, therefore, the same is on account of withdrawal of interest allowed under section....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the appeal filed by the assessee against such order of the Assessing Officer objecting to the amount of interest is maintainable. The learned authorised representative has then relied upon the judgment of the hon'ble Calcutta High Court in the case of Kooka Sidhwa and Co. v. CIT [1964] 54 ITR 54 (Cal) and sub- mitted that the order passed by the Assessing Officer to give effect to the directions of the appellate authority is an appealable order as held by the hon'ble High Court. He has then relied upon the judgment of the hon'ble Bombay High Court in the case of Empire Industries Ltd. v. CIT [1992] 193 ITR 295 (Bom) ; 59 Taxman 443 (Bom) and submitted that the hon'ble Bombay High Court has also taken a similar view that the order passed by the Assessing Officer to give effect to the order of the appellate authority is an appealable order and the appeal filed by the assessee is maintainable. Similarly he has relied upon the hon'ble Andhra Pradesh High Court in the case of Bakelite Hylam Ltd. v. CIT [1988] 171 ITR 344 (AP) ; [1988] 37 Taxman 210 (AP). Thus, the learned authorised representative has sub- mitted that in all these judgments it is held that the giving....
X X X X Extracts X X X X
X X X X Extracts X X X X
....25,56,045 Rs. 7,28,28,846 Add : expenses disallowed- (i) Income-tax 84,28,958 (ii) Charity and donation 17,82,422 (iii) Delayed PF payment under section 1 35,081 (iv) Delayed PF payment under section 43B 39,786 (v) On account of telephone expenses 45,357 (vi) On account of travelling and conveyance 22,199 Rs. 1,03,53,803 Rs. 8,31,82,649 Less : DEPB for separate considered 2,29,806 Less : Depreciation as claimed 25,56,045 Rs. 27,85,851 Gross income from business and profession Rs. 8,03,96,798 Less : 1. Deduction under section 80-IB as calculated above 1,22,73,389 2. Deduction under section 80HHC as calculated 4,69,80,196 Rs. 5,92,53,585 Income from business : Rs. 2,11,43,213 Add : Income from other sources DEPB Rs. 2,29,806 Total income Rs. 2,13,73,019" Thus, the Assessing Officer computed the total inco....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome-tax (Appeals). The learned Commissioner of Income-tax (Appeals), as we have discussed earlier, has dismissed the appeal of the assessee in limine being not maintainable as the said order of the Assessing Officer in computing the Income-tax liability/demand is not appealable. The learned authorised representative of the assessee has relied upon a series of decisions in support of the contention that the order passed by the Assessing Officer in pursuant to the appellate authority is an appealable order. It is pertinent to note that there are divergent views on this issue about the maintainability of the appeal against the order of the Assessing Officer and particularly levying the interest under section 220(2) in pursuant to the order/judgment of the appellate forum. The learned Commissioner of Income-tax relied upon the judgment of the hon'ble Calcutta High Court in the case of ANZ Grindlays Bank PLC v. CIT (supra) whereas the learned authorised representative of the assessee has relied upon a series of decisions of other High Courts in support of his contention. So far as the recomputation of the total income of the assessee in pursuant to the judgment of the hon'ble ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Deputy Commissioner (Appeals) (before the 1st day of June, 2000) against such order :. . . (c) an order under section 154 or section 155 having the effect of enhancing the assessment or reducing a refund or an order refusing to allow the claim made by the assessee under either of the said sections.' The order under section 154 of the Act had the effect of enhancing the assessment. Such orders are appealable on all aspects decided and adjudicated. The order under section 154 of the Act had also specifically dealt with and examined the question of interest under section 220(2) of the Act and the date from which the interest was chargeable. The direction to charge interest was specifically given in the order under section 154 of the Act. The claim and contention of the appellant-assessee to the contrary was rejected and disallowed. The Assessing Officer had refused to accept the contention made by the assessee that interest would not be chargeable under section 220(2) of the Act until and unless there was non-payment pursuant to the order passed. This is a peculiar case wherein the question of levy of interest under section 220(2) of the Act, which is payable on non- pay....
X X X X Extracts X X X X
X X X X Extracts X X X X
....including interest of Rs. 56,000. By order dated June 27, 1974 the appellate authority allowed the appeal partly. While giving effect to the appellate order, the Income-tax Officer determined the amount refundable to the assessee at Rs. 9.46 lakhs. The amount was refunded but interest thereon under section 214 of the Act was not paid. Being aggrieved, the assessee filed an appeal before the appellate authority and claimed that the Income-tax Officer ought to have granted interest under section 214. The appellate authority and the Tribunal held that the appeal was not competent. On a reference, it was held by the Bombay High Court that the Income-tax Officer's order had been passed under section 154 and appeal therefrom was competent under section 246(1)(f). This judgment, to the above extent, applies to the facts of our case. In the present case also, the Assessing Officer was concerned with giving effect to the order dated December 31, 1986 passed by the Commissioner of Income-tax (Appeals) when he failed to grant interest under section 214 and under section 244(1A). This is very clear also from page 5 of the paper book which refers to the order of the Assessing Officer dated ....