TaxTMI 
TaxTMI 
2026 (7) TMI 1490
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of interest u/s 244A in the appeal effect order, which cannot be challenged before the CIT(A) under the provisions of Section 246A of the Act. " 3. "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the appeal under Section 246A can be filed only against the orders specifically enumerated therein and that the impugned order of the Assessing Officer giving effect to the Hon'ble ITAT/High Court order did not fall within the ambit of appealable orders." 4. "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing the assessing officer to recompute the interest u/s 244A and refund amount, despite the fact that no such adjudication was permissible in an appeal against an order which itself was non-appealable." 5. "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing to grant interest u/s 244A of the Act on the basis of adjustment of refund generated in present order adjust the interest granted in earlier order first then with the principal amount. 6. "The appellant craves leave, to add, alter or ame....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecision of the hon'ble Supreme Court of India in the case of CIT Gujarat Vs. Gujarat Fluoro Chemicals {(2014) 42 taxmann.com 1(SC)) which held that Interest on interest under section 244A is not permitted. The ld DR also relied on the hon'ble High Court of Delhi in the case of CIT Vs. Indian Farmer Fertilizer Co- Operative ((2016) 71 taxmann.com 37 (Delhi)) Section 244A of the Income Tax Act, 1961 which followed suit. 7. The ld counsel of the assessee, with respect to ground of maintainability of appeal u/s 246A, relied on the following decisions to assert that order giving effect partakes the character of assessment order u/s 143(3) and is therefore appealable: 1.Caltex Oil Refining (India) Ltd v. CIT (1993) 202 ITR 375(Bom) 2.Empire Industries Ltd. v. CIT (Bombay) dated 27.03.1991 3.Kooka Sidhwa & Co. v. CIT (1964) 54 ITR 54(Calcutta) 4.CIT v. Warner Hindustan Ltd. (1979) 117 ITR 15(Andhra Pradesh) 5.Malnad Areca Marketing Co-operative Society Ltd., APMC Yard, Shivamogga v. ACIT (Banglore - Trib.) ITA 1315/Bang/2019 8. On the issue of the basis of calculation of amount of refund u/s 244A of refund, the ld AR of the assessee submi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n interest in case of exceptional delay in issuance of refund, is no more valid. However, in the instant facts, the Assessee is not seeking 'interest on interest'; instead, its claim was for interest on outstanding principle (after fairly adjusting refund received against interest accrued till the date of grant of refund). 11. It is further submitted that in the following decision(s), the question of applicability of decision of Hon'ble Supreme Court in case of CIT v. Gujarat Fluro Chemicals (supra) has been examined and held in favor of the taxpayer. * India Trade Promotion Organization v. CIT [2013] 38 taxmann.com 233 (Delhi High Court) -Para 7 and 15 * Union Bank of India v. ACIT [2016] 72 taxmann.com 348 (Mumbai Tribunal)- Para 3.6. * Nirma Ltd. v. DCIT [2025] 172 taxmann.com 429 (Ahmedabad Tribunal) - Para 15 * Grasim Industries Ltd. v. DCIT [2021] 123 taxmann.com 312 (Mumbai Tribunal) - Para 6 12. We have heard the rival submissions and have carefully perused the materials on record. The issue before us for adjudication is the twofold- whether the Order Giving Effect to the ITAT order is appealable u/s 246A and if yes, wha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is calculated from the date mentioned in the notice of demand till the date of actual payment. Under Explanation to Section 140A(1), it is stipulated where the amount paid by an assessee under self-assessment falls short of the aggregate amount of tax and interest aforesaid, the amount paid shall first be adjusted towards the interest payable and the balance, if any, shall be adjusted towards the tax payable. The interpretation given by us follows the same principle when Revenue defaults and makes part payment of the amount refundable. The aforesaid interpretation also ensures that the Assessing Officer/Revenue refund the entire amount, which is due and payable, including interest payable under Section 244A. It discourages part payment. There is no other provision under the Act under which an Assessing Officer/Revenue can be made liable to pay interest when part payment is made and the entire amount, which is refundable is not paid to the assessee. Otherwise the Assessing Officer/Revenue can refund the principal amount and not pay the interest component under Section 244A for an unlimited period with impunity and without any sanction, which would amount to granting premium to a non....