TaxTMI 
TaxTMI 
2022 (3) TMI 137
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....provisions of section 244A where refund of "any amount" arises to the appellant out of advance/TDS/tax paid, the appellant is entitled to interest from the 1st day of April of the Assessment Year/Date of payment to the date on which the refund is actually granted. The actual interest due to the appellant calculated strictly on the above basis amounting to Rs. 16,84,867/-. Hence this sum should have been granted as interest under section 244A. 2.2 The Appellant relies on the decision of the Honb'le Apex court in the case of Sandwik Asia Limited reported in 280 ITR 643. 2.3 The Commissioner of Incometax (Appeals) ought to have appreciated that in assessee's own case the Chennai Tribunal has allowed the issue in favour of assessee in ITA Nos. 1558 to 1564 in the for ÀY 1986-87, 89-90 to 94-95 by an order dated 06.02.2009." 3. The assessee had also filed a petition for admission of additional grounds by taking certain grounds on the issue of determination of interest payable u/s.244A of the Income Tax Act, 1961, and relevant additional grounds of appeal taken by the assessee are as under:- "a) In computing the interest payable under Section 244A, th....
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....f the case, the Tribunal was right in holding that the appellant is not entitled to the differential claim of interest u/s 244A on refund as claimed by it? 2) Whether the Tribunal was right in law in not following the judgment of the Hon'ble Supreme Court in the case of CIT Vs. H.E.G. Ltd. (324 ITR 331) holding that interest component will partake of the character of the amount due u/s 244A of the Act which becomes an integral part of the principal amount and assessee would be entitled to interest after the said amount becomes due and payable." 5. The Hon'ble High Court of Madras vide its order in TCA No.53 of 2013 dated 05.02.2021 remitted the issue back to the file of the Tribunal for fresh consideration. Therefore, present appeal is posted for hearing to decide the issue involved in the appeal filed by the assessee. 6. The learned A.R for the assessee referring to additional grounds of appeal filed by the assessee vide iis petition dated 21.08.2021 submitted that although, the assessee is not entitled for interest on interest in view of subsequent judgement of the Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flouro Chemicals (2013) 358 ITR 291 (SC)....
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....st on refund, but not entitled for interest on interest. Therefore, the learned DR submitted that there is no merit in the arguments of the assessee that while computing interest u/s.244A of the Act, refund given to the assessee should be first adjusted against interest payable and balance if any, payable should be adjusted against tax. Therefore, the learned DR submitted that additional grounds of appeal filed by the assessee and petition filed under Rule 27 of ITAT Rules cannot be entertained. 9. We have heard both the parties, perused material available on record and gone through orders of the authorities below. We have also carefully considered various case laws cited by the assessee in light of petition filed by the assessee for admission of additional grounds of appeal along with petition filed under Rule 27 of ITAT Rules, 1963. As regards petition filed by the assessee for admission of additional grounds dated 25th August, 2021, we find that the assessee has filed additional grounds taking certain grounds in light of provisions of section 140A of the Income Tax Act, 1961, and requested to give direction to the Assessing Officer as to how to compute interest u/s.244A of th....
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....nce of earlier judgement in the case of CIT Vs. H.E.G. Ltd.(supra), while deciding the issue in the case of CIT Vs. Gujarat Flouro Chemicals (supra), but because judgement of Gujarat Flouro Chemicals is subsequent to the decision of CIT Vs. H.E.G. Ltd.(supra) and thus, we presume that the Hon'ble Supreme Court was aware of its earlier judgement of CIT Vs. H.E.G. Ltd.(supra), while deciding the issue and thus, we are of the considered view that subsequent judgement of the Hon'ble Supreme Court prevails on this issue. Further, in the case of CIT Vs. Gujarat Flouro Chemicals (supra), it was very categorically held that assessee is not entitled for interest on interest. Further, the law is very clear that as per section 244A of the Act, the assessee is entitled for interest on refund due from the date immediately following expiry of period of three months of aforesaid to the date on which refund is granted. We further noted that there is no substance in additional grounds taken by the assessee in light of provision of provisions of section 140A of the Act, because manner in which amount paid by the assessee to be adjusted has been specifically provided u/s.140A of the Act, and ....
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....titled for interest on refund due from a particular period and except this, the assessee is not entitled for interest on interest, in case there is delay in refund payable to the assessee. This provision has been explained by the Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flouro Chemicals (supra), where the Hon'ble Supreme Court, after considering its earlier judgement in the case of M/s.Sandwik Asia Ltd. vs. CIT (supra), has very categorically held that the assessee is entitled only for interest provided under the Act for specified period, but not interest on interest while granting refund to the assessee u/s.244A of the Income Tax Act, 1961. Therefore, we are of the considered view that there is no merit in arguments taken by the counsel for the assessee that assessee is entitled for interest on interest while granting refund due to the assessee. This position has been reiterated by the ITAT., Chennai in assessee's own case for earlier year in ITA No.1559/Chny/2008 vide order dated 25.02.2020 and held that the assessee is not entitled for interest on interest. But, the Tribunal has admitted additional grounds filed by the assessee and directed the Assessing Offi....