2011 (11) TMI 846

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....erred in directing the assessing officer to grant interest under section 244A to the assessee as claimed by it. 2.2. It is submitted that in the decision of the Supreme Court in the case of M/s. Sandvik Asia Ltd Vs CIT (280 ITR 643), the apex court only as a matter of compensation on account of inordinate delay in that case (of 17 years) granted interest on interest and it cannot be considered that interest on interest is allowable in a routine manner when sec. 244A speaks of simple interest only. 3. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restored." 2. The sole issue involved in all the grounds of appeal....

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....ment year 1993·94 in which the Hon'ble ITAT has decided the issue in favour of the appellant. While deciding the issue, the Hon'ble ITAT has relied on the decision of the Hon'ble Supreme Court in the case of Sandvik Asia Ltd v. CIT - 280 ITR 643 (SC). 3. I have carefully considered the facts pertaining to this case, case laws and the argument made by the Ld. AR. It is seen from the order of the AO that interest u/s 244A has neither been granted nor the reason for not granting interest is given in the said order. On the other hand, the appellant has given the working of the interest alongwith the grounds of appeal. As per provisions of S. 244A where refund of any amount becomes due to the assessee under the Income-tax Ac....