The ACIT,Anand Circle, Anand V. National Dairy Development Board, Anand

ITA 1384/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8538 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 08-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUNJAY R SHAH
• Section: 143(3); 244A; 234B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1384/AHD/2014 ( / ASSESSMENT YEAR : 2007-08) ASST.COMMISSIONER OF INCOME TAX ANAND CIRCLE ANAND / VS. NATIONAL DAIRY DEVELOPMENT BOARD ANAND-388 001 # ./ ./ PAN/GIR NO. : AABCN2029C ( #% / APPELLANT ) .. ( &#% / RESPONDENT ) #%' / APPELLANT BY : SHRI MUDIT NAGPAL, SR.DR &#%(' / RESPONDENT BY : SHRI SUNJAY R.SHAH, AR )*(+ / DATE OF HEARING 24/07/2017 ,-./(+ / DATE OF PRONOUNCEMENT 21/09/2017 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL IS DIRECTED BY THE REVENUE A GAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-I, BAROD A [CIT(A) IN SHORT] DATED 14/02/2014 FOR THE ASSESSMENT YEAR (AY) 2007-08. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE RE AD AS UNDER:- 1. ON THE FACTS OF THE CASE AND ON THE CIRCUMSTANC ES AND IN LAW, THE CIT(A)-IV BARODA HAS ERRED IN GRANTING AN AMOUN T OF ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 2 - 33,54,201, BEING INTEREST U/S.244A OF THE ACT ON TH E INTEREST U/S.234B OF 2,68,33,606 IGNORING THE FACT THAT THERE IS NO PROVISION U/S.244A R.W.S.2(43) OF THE ACT TO PAY IN TEREST ON INTEREST. 2. ON THE FACTS OF THE CASE AND ON THE CIRCUMSTANC ES AND IN LAW, THE CIT(A)-IV BARODA HAS ERRED IN GRANTING INTEREST OF 33,54,201 U/S.244A OF THE ACT ON THE INTEREST U/S.234B OF 2,68,33,606 RELYING ON THE DECISION OF ITAT AHMEDABAD C BENCH IN THE CASE OF ALEMBIC GLASS INDUSTRIES LTD. DATED 10.11.2006, BRUSHING ASIDE THE RATIO LAID DOWN BY HONBLE SUPREME COURT IN THE CASE OF CIT GUJARAT V/S. GUJARAT FLUORO CHEMICALS DATED 18.09.2 013 THAT THE REVENUE HAS NOT TO PAY INTEREST ON INTEREST. 3. BRIEFLY STATED, THE ASSESSEE CAME INTO EXISTENCE BY AN ACT OF PARLIAMENT CALLED NATIONAL DAIRY DEVELOPMENT BOARD ACT, 1987. THE ASSESSMENT OF THE ASSESSEE FOR AY 2007-08 UNDER CON SIDERATION WAS COMPLETED UNDER S.143(3) OF THE INCOME TAX ACT, 196 1 (HEREINAFTER REFERRED TO AS 'THE ACT') VIDE ORDER DATED 30/09/20 10 AFTER MAKING CERTAIN ADDITIONS. THE ASSESSEE PREFERRED APPEAL BEFORE TH E CIT(A) AGAINST THE AFORESAID ASSESSMENT ORDER. THE CIT(A) CONFIRMED C ERTAIN ADDITIONS MADE BY THE ASSESSING OFFICER (AO) AND GRANTED RELI EF IN RESPECT OF SOME OTHER ADDITIONS. THE AO PASSED AN ORDER DATED 05/0 1/2011 GIVING APPEAL EFFECT TO THE ORDER OF THE CIT(A). IT IS THE CLAIM OF THE ASSESSEE THAT WHILE GIVING APPEAL EFFECT, THE AO MISINTERPRETED THE DIR ECTIONS OF THE CIT(A) IN RESPECT OF ISSUE OF WRITE BACK OF PROVISIONS AND DENIED RELIEF CLAIMED BY ASSESSEE. THE ASSESSEE WENT IN APPEAL BEFORE TH E CIT(A) ONCE AGAIN WHO VIDE ORDER DATED 29/02/2012 DECIDED THE ISSUE I N FAVOUR OF ASSESSEE. ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 3 - THE AO PASSED ANOTHER ORDER DATED 19/03/2012 GIVING EFFECT TO THE ORDER OF THE CIT(A) WHICH RESULTED INTO REFUND OF 17,56,65,904 EXCLUDING INTEREST PAYABLE TO ASSESSEE ON EXCESS TAX DEPOSITE D AS PER S.244A OF THE ACT. THE AO COMPUTED INTEREST OF 1,05,01,836 UNDER S.244A OF THE ACT ON PRINCIPAL AMOUNT OF REFUND OF 17,56,65,904. HOWEVER, AS PER THE ASSESSEE, THE CORRECT INTEREST UNDER S.244A EN TITLED TO ASSESSEE WAS WORKED OUT TO 1,38,56,037. ACCORDINGLY, THE ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) ASSAILING WRONG CALCULATION OF IN TEREST BY THE AO UNDER S.244A OWING TO WHICH INTEREST HAS BEEN SHORT GRANTED TO THE EXTENT OF 33,54,201. 4. THE CIT(A) REVISITED THE ISSUE AND FOUND MERIT IN THE CASE OF THE ASSESSEE. THE RELEVANT PARAS OF THE ORDER OF THE C IT(A) DEALING WITH THE ISSUE IS REPRODUCED HEREUNDER FOR READY REFERENCE:- 2. AGAIN DURING THE COURSE OF APPELLATE PROCEEDINGS $HRI YOGESH SHAH, CA ATTENDED AND FILED SUBMISSION DATED 11/02/2014 ON BEHALF OF THE APPELLANT AND THE SAME IS ALSO REPRODUCED HEREUNDER FOR REFERENCE: 'THE ASSESSMENT FOR THE YEAR UNDER CONSIDERATION WA S COMPLETED UNDER SECTION 143(3) OF THE ACT AFTER MAKING VARIOUS ADDITIONS. T HE APPELLANT HAD PREFERRED APPEAL TO THE CIT(A) AGAINST THE ORDER OF THE AO. THE CIT( A) HAD CONFIRMED CERTAIN ADDITIONS MADE BY THE AO VIDE HIS ORDER DATED 30/09 /2010 AND DELETED CERTAIN ADDITIONS. AO PASSED AN ORDER DATED 05/01/2011 GI VING EFFECT TO THE DIRECTIONS OF CIT(A) BUT ERRED IN GIVING EFFECT TO THE ISSUE OF W RITE BACK OF PROVISION CREATED IN EARLIER YEARS. AO ERRONEOUSLY MISINTERPRETED THE DI RECTION OF CIT(A) AND GAVE EXACTLY OPPOSITE EFFECT THEREOF. AGAINST THE SAID O RDER OF AO, APPELLANT PREFERRED AN APPEAL TO CIT(A) WHO WIDE HIS ORDER DATED 29/02/201 2 DECIDED IN FAVOUR OF THE APPELLANT. ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 4 - ; AO HAS NOW PASSED AN ORDER DATED 19/03/2012 GIVING EFFECT TO THE SAME WHICH RESULTED INTO REFUND OF RS.17,56,65,904/- EXCLUDING INTEREST U/S 244A. THE AO HAS GRANTED INTEREST OF RS.1,05,01,836/-. GROUND NO. 1 GENERAL GROUND NO.2 INTEREST UNDER SECTION 244A NOT PROPERL Y GRANTED THE APPELLANT SUBMITS THAT THE INTEREST GRANTED BY THE AO UNDER SECTION 244A IS NOT PROPERLY GRANTED AND ON PROPER WORKING THE INTEREST WOULD WORK OUT TO BE RS.1,38,56,037/- AS AGAINST RS.1,05,01,836/-. THE APPELLANT GIVES BELOW COMPARISON OF THE WORKING OF INTEREST UNDER SECTION 244A AS MADE BY THE AO AND AS PER APPELLANT: PARTICULARS AS PER AO AS PER APPELLANT TOTAL INCOME AS DETERMINED IN THE ORDER UNDER CONSIDERATION 18,21.02.564 18,21,02,564 TAX ON TOTAL INCOME 5,46,30,769 5,46,30,769 ADD: SURCHARGE 54,63,077 54,63,077 ADD: EDUCATION CESS 12.01.877 6,12,95,723 12,01,877 6,12,95,723 LESS: TDS 1,85,59,075 1,85,59,075 4,27,36,648 4,27,36,648 LESS: TAXES PAID AFTER REGULAR ASSESSMENT ON 26/2/2010 12,40,50,606 12,40,50,606 ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 5 - REFUND DUE (8,13,13,958) (8,13,13,958) ADD: INTEREST U/S 234B PAYABLE AS PER THIS ORDER 1,41,03,049 1,41,03,049 LESS: LEVIED EARLIER 4.09.36.700 (2,68.33,606) 4,09,36,700 (2, 68,33,606) (1 0,81,47,564 ) (10,81,47,564) ADD: REFUND OF AY 11- 12 ADJUSTED ON 29/2/2012 (6,75,18,340) (6,75,18,340) (17,56,65,904) (17,56,65,904) INTEREST U/S 244A ON RS.81313958/-FROM 26/2/2010 TO 22/3/2012 I.E FOR 25 MONTHS @ 0.5% 1,01,64,244 ON RS.67518340/- FROM 1/3/2012 TO 22/3/2012 I.E. FOR 1 MONTH @ 0.5% 3,37,592 1,05,01,836 ON RS.108147564/- FROM 26/2/2010 TO 22/3/2010 I.E. FOR 25 MONTHS @ 0.5% 1,35,18,446 ON RS.67518340/- FROM 1/3/2012 TO 22/3/2012 3,37,592 1,38,56,038 ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 6 - I.E. FOR 1 MONTH @ 0.5% TOTAL REFUND + INTEREST (18.61.67.740) (18,95,21,942) INTEREST GRANTED SHORT BY RS.33, 54,202 /- THE APPELLANT SUBMITS THAT FROM THE ABOVE CALCULATI ON OF INTEREST UNDER SECTION 244A IT IS CLEAR THAT THE AO HAS ERRED IN NOT GRANTED IN TEREST ON REFUND OF RS.2,68,33,606/- WHICH IS ARISING OUT OF THE PAYMENT MADE TOWARDS IN TEREST UNDER SECTION 234B OF THE ACT. COPY OF THE ITNS 150 IN RESPECT OF THE ORDER U NDER CONSIDERATION IS ENCLOSED AT PAGE NO. 1-2 OF THE PAPER BOOK EVIDENCING THE WORKI NG SET OUT ABOVE. THE APPELLANT SUBMITS THAT IT IS ENTITLED TO INTERE ST UNDER SECTION 244A OF THE ACT ON THE AMOUNT OF INTEREST PAID UNDER SECTION 234B RS.2 6833606/- WHICH IS BEING NOW REFUNDED BACK TO IT. THE REFUND ON THE INTEREST IS ALSO A REFUND OF AMOUNT P AID OR COLLECTED FROM ITS AND HENCE IT IS ENTITLED TO INTE REST UNDER SECTION 244A OF THE ACT. WHILE SO SUBMITTING THE APPELLANT RELIES ON THE DEC ISION OF AHMEDABAD TRIBUNAL IN CASE OF ALEBMIC GLASS INDUSTRIES LTD. ILL ITD 320. THE HON'BLE TRIBUNAL HELD AS UNDER: SECTION 244A GRANTS INTEREST ONLY ON THAT AMOUNT OF REFUND THAT IS OUT OF THE PAYMENTS OF TAX OR PENALTY, MADE BY THE ASSESSEE OR COLLECTE D FROM HIM. IN THE INSTANT CASE, THE ASSESSEE HAD MADE THE PAYMENT OF INTEREST UNDER SEC TION 234B, WHICH WAS TO BE REFUNDED AS THE SAME WAS FOUND TO BE NOT CHARGEABLE . THEREFORE, THE CONDITION, THAT REFUND WAS OUT OF AMOUNT PAID OR COLLECTED FROM THE -ASSESSEE, WAS SATISFIED FOR GRANTING THE INTEREST. [PARA 19] CONSIDERING THE DICTIONARY MEANINGS OF THE WORD 'RE FUND', IT CAN BE SAID THAT IT IS AN ACT OF REPAYMENT OR REIMBURSEMENT OF WHAT ONE HAS P AID EARLIER. THIS TEST WAS SATISFIED IN THE INSTANT CASE. [PARA 20] ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 7 - AS REGARDS THE QUESTION AS TO WHETHER INTEREST PAID BY ASSESSEE UNDER SECTION 234B HAS TO BE TAKEN OUT OF THE PAYMENT OF TAX OR PENALT Y FOR GRANTING INTEREST UNDER SECTION 244(L)(B), THE EXPRESSION 'TAX OR PENALTY 1 FOUND IN THE CLAUSE (B) IN LATER PART OF THE SECTION 244A(1) WOULD NOT QUALIFY OR RESTRIC T THE SCOPE OF THE EXPRESSION 'AMOUNT' FOUND IN THE OPENING PART OF THE SECTION T O MEAN ONLY 'TAX OR PENALTY'. THE FUNCTION OF THE CLAUSE (B) OF LATER PART OF SECTION 244(1A) IS TO FIND OUT THE DATE AND PAYMENT OF THE EXCESS AMOUNT WHICH THE ASSESSEE PAI D BY WAY OF TAX OR PENALTY TO START THE RUNNING OF INTEREST AND THAT IS THE REASO N THE EXPRESSION 'FROM THE DATE OR, AS THE CASE MAY BE, DATES OF PAYMENT OF TAX OR PENALTY ' HAS BEEN EMPLOYED. TO DETERMINE THE DATE(S) OF THE PAYMENT OF THE AMOUNT UNDER SECT ION 244(1), IT GIVES EMPHASIS? ON THE AMOUNT PAID BY THE ASSESSEE IN PURSUANCE OF AN ORDER AND THAT AMOUNT CANNOT BE LIMITED TO THE AMOUNT OF TAX OR PENALTY, BUT WOULD ENCOMPASS THE AMOUNT OF INTEREST PAID BY THE ASSESSEE. IT SEEMS TO BE THE INTENTION OF THE LEGISLATURE THAT THE RIGHT TO GET INTEREST ON REFUND OF INTEREST PAYMENT IS TO CO MPENSATE THE ASSESSEE FOR THE EXCESS PAYMENT DURING THE INTERVENING PERIOD WHEN THE ASSESSEE DID NOT HAVE T HE BENEFIT OF USE OF SUCH MONEY PAID IN WHATSOEVER CHARACTER. A L ITERAL MEANING GIVEN TO THE EXPRESSION 'TAX OR PENALTY' FOUND IN CLAUSE (B) OF THE LATER PART OF SECTION 244A(1) WOULD CREATE AN ANOMALOUS SITUATION RESULTING IN EX CLUSION OF THE CONCEPT OF THE INTEREST. THEREFORE, IN THE CONTEXT OF SECTION 244A (L)(B), THE EXPRESSION 'TAX' WOULD INCLUDE INTEREST ALSO AND THE DEFINITION OF TAX IN SECTION 2(43) MEANING 'INCOME- TAX' MAY NOT BE APPLICABLE IN THE CONTEXT OF SECTION 244 A(1). CONSEQUENTLY, THE INTEREST PAID IN PURSUANCE OF AN ORDER UNDER SECTION 234B HA S TO BE REGARDED AS FORMING PART OF TAX OR AN ADJUNCT TO INCOME-TAX. THE RESULT WAS THAT THE ASSESSEE WOULD BE ENTITLED TO INTEREST ON THE REFUND OF INTEREST PAID UNDER SE CTION 234B ALSO. [PARA 29] THE COPY OF THE DECISION IS ENCLOSED AT PAGE NO. 3- 11 OF THE PAPER BOOK. THE APPELLANT HAS ALSO FILED RECTIFICATION APPLICAT ION BEFORE THE AO POINTING OUT THE ABOVE, BUT THE AO HAS NOT DISPOSED OF THE SAME. COP Y OF THE APPLICATION IS ENCLOSED AT PAGE NO. 12-13 OF THE PAPER BOOK. IN VIEW OF THE ABOVE, THE APPELLANT PRAYS TO YOUR H ONOUR TO DIRECT THE ASSESSING OFFICER TO GRANT INTEREST UNDER SECTION 244A OF THE ACT OF RS.33,54,20I/- ON THE REFUND OF INTEREST PAID UNDER SECTION 234B OF THE ACT.' 3. THE ABOVE SUBMISSION OF AR OF THE APPELLANT IN C ONNECTION WITH CONSIDERED. THE FIRST GROUND OF APPEAL OF THE APPELLANT IS THAT THE ORDER PASSED BY THE ASSESSING OFFICER IS ERRONEOUS AND CONTRARY TO THE PROVISIONS OF LAW AND FACTS AND THEREFORE REQUIRES TO BE SUITABLY MODIFIED. IT IS SUBMITTED T HAT IT BE SO DONE NOW. THIS GROUND OF APPEAL OF THE APPELLANT IS OF GENERAL NATURE AND TH EREFORE THE SAME IS NOT ADJUDICATED ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 8 - UPON. THE G ROUND OF APPEAL NO. 2 OF THE APPELLANT IS THAT THE LD. ASSESSING OFFICER ERRED IN COMPUTING INTEREST U/S 244A AT RS. 1,05,01 ,836/- AS AGAINST RS, 1,38,56,037/- ON THE REFUND DETERMINED OF RS. 17,56,65,904/-. IT IS SUBMITTED THAT THE ASSESSING OFFICER BE DIRECTED TO GRANT FURTHER INTEREST OF RS . 33,54,201/-. WITH REGARD TO THIS GROUND OF APPEAL THE ABOVE SUBMISSION DATED 11/02/2 014 OF THE AR OF THE APPELLANT IS FOUND TO BE TENABLE. THE MAIN CONTENTION OF AR OF T HE APPELLANT IS THAT IT IS ENTITLED TO INTEREST U/S 244A OF THE ACT ON THE AMOUNT OF INTER EST PAID U/S 234B OF RS. 2,68,33,606/- WHICH WAS REFUNDED BACK TO IT. IT IS SUBMITTED BY THE AR THAT THE REFUND ON THE INTEREST IS ALSO A REFUND OF AMOUNT PAID OR COLLECTED FROM APPELLANT AND HENCE APPELLANT IS ENTITLED TO INTEREST U/S 244A OF THE A CT. THE APPELLANT HAS RELIED UPON THE DECISION OF HON'BLE ITAT AHMEDABAD IN THE CASE OF A LEMBIC GLASS INDUSTRIES LTD. 111 ITD 320. THE HON'BLE ITAT AHMEDABAD IN THIS REF ERRED DECISION HAS MAINLY HELD THAT SECTION 244A GRANTS INTEREST ONLY ON THAT AMOU NT OF REFUND, I.E. OUT OF THE PAYMENTS OF TAX OR PENALTY, MADE BY THE ASSESSEE OR COLLECTED FROM HIM. AS PER THE HON'BLE ITAT IN, THE INSTANT CASE, THE ASSESSEE HAD MADE PAYMENT OF INTEREST U/S 234B WHICH WAS TO BE REFUNDED AS THE SAME WAS FOUND TO B E NOT CHARGEABLE. AS PER THE HON'BLE ITAT THEREFORE, THE CONDITION, THAT REFUND WAS OUT OF AMOUNT PAID OR COLLECTED FROM THE ASSESSEE WAS SATISFIED FOR GRANT ING THE INTEREST. AS PER THE HON'BLE ITAT, AHMEDABAD A LITERAL MEANING GIVEN TO THE EXPR ESSION 'TAX OR PENALTY' FOUND IN CLAUSE (B) OF THE LATER PART OF SECTION 244A(1) WOU LD CREATE AN ANOMALOUS SITUATION RESULTING IN EXCLUSION OF THE CONCEPT OF THE INTERE ST. THEREFORE, IN THE CONTEXT PF SECTION 244A(L)(B), THE EXPRESSION 'TAX' WOULD INCL UDE INTEREST ALSO AND THE DEFINITION OF TAX IN SECTION 2(43) MEANING 'INCOME- TAX' MAY N OT BE APPLICABLE IN THE CONTEXT OF SECTION 244A(1). AS PER THE HON'BLE ITAT CONSEQUENT LY, THE INTEREST PAID IN PURSUANCE OF AN ORDER UNDER SECTION 234B HAS TO BE REGARDED AS FORMING PART OF TAX OR AN ADJUNCT TO INCOME-TAX AS PER THE HON'BLE ITAT , THE RESULT WAS THAT THE ASSESSEE WOULD BE ENTITLED TO INTEREST ON THE REFUND OF INTE REST PAID UNDER SECTION 234B ALSO. IN VIEW OF THIS DECISION OF HON'BLE ITAT, IT IS HELD T HAT THE APPELLANT IS ENTITLED TO INTEREST U/S 244A OF THE IT ACT ON THE AMOUNT OF IN TEREST OF RS.2,68,33,606/- AS PAID BY IT U/S 234B OF THE IT ACT. IN VIEW OF THIS THE A O IS DIRECTED TO GRANT INTEREST TO THE APPELLANT ON AMOUNT OF 2,68,33,606/- U/S.244A OF TH E IT ACT FOR THE PERIOD FOR WHICH IT IS ELIGIBLE IN ACCORDANCE WITH THE LAW. THUS THE APPEAL OF THE APPELLANT IS ALLOWED. 5. AGGRIEVED BY THE ORDER OF THE CIT(A) ALLOWING EX TRA INTEREST OF 33,54,201 TO ASSESSEE UNDER S.244A QUA THE WORKING OF AO, THE REVENUE FILED AN APPEAL BEFORE THE TRIBUNAL. ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 9 - 6. SUBMISSIONS WERE MADE ON BEHALF OF BOTH THE SIDE S. 7. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTH ORITIES BELOW AND CONSIDERED THE RIVAL SUBMISSIONS. THE CENTRAL QUES TION INVOLVED IN THE PRESENT APPEAL IS WHETHER THE EXPRESSION IN ANY OT HER CASE OCCURRING IN SECTION 244A(1)(B) OF THE ACT WOULD INCLUDE INTERES T ON AN AMOUNT OF REFUND RESULTED FROM REVERSAL OF EXCESS INTEREST C HARGED UNDER S.234B OF THE ACT. AS PER INCOME TAX COMPUTATION FORM PREPAR ED BY AO, INTEREST UNDER S.234B WAS ORIGINALLY COMPUTED AT 4,09,36,700 WHICH WAS REDUCED TO 1,41,03,094 DUE TO REVERSAL OF CERTAIN ADDITIONS IN THE SECOND ROUND OF APPEAL BEFORE THE CIT(A). THIS RESULTED I N REDUCTION OF INTEREST CHARGEABLE TO THE ASSESSEE BY 2,68,33,606. CONSEQUENTLY, THIS HAS RESULTED IN ENHANCEMENT OF REFUND AMOUNT. THE AO WHILE GIVING EFFECT TO ORDER OF CIT(A) IN SECOND ROUND OF PROCEEDINGS, OMITTED TO CALCULATE INTEREST UNDER S.244A OF THE ACT ON THE AFORESAID E XCESS INTEREST CHARGED EARLIER UNDER S.234B AND WHICH LED TO REDUCTION O F THE PRINCIPAL AMOUNT OF TAX REFUND TO THE EXTENT OF EXCESS INTEREST. T HE PRINCIPAL SUM OF REFUND STOOD ENHANCED ON THE REDUCTION OF AFORESAID INTEREST UNDER S.234B WRONGLY CHARGED EARLIER. THE ASSESSEE SEEKS CLAIM OF INTEREST UNDER S.244A ON THE ENHANCED PRINCIPAL AMOUNT OF RE FUND ON APPLYING REVISED AND CORRECT LIABILITY UNDER S.234B OF THE A CT. WE FIND THAT THE CIT(A) HAS DEALT WITH THE ISSUE THREADBARE AS NOTED ABOVE AND APPLIED CORRECT LEGAL PRINCIPLES WHILE GRANTING RELIEF TO T HE ASSESSEE. WE DO NOT ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 10 - CONSIDER IT NECESSARY TO REITERATE THE SIMILAR FIND ING AND ADOPT THE FINDINGS OF THE CIT(A) IN TOTO . SUFFICE IT TO SAY, THE TAX LIABILITY INCLUDING INTEREST IS REQUIRED TO BE DETERMINED ON THE CORRECT ASSESSED INCOME. THE ASSESSEE, IN CONSEQUENCE, IS ENTITLED TO INTEREST ON EXCESS TAX PAID BEGINNING FROM DATE OF PAYMENT OF TAX TO T HE DATE ON WHICH REFUND IS GRANTED AS CONTEMPLATED UNDER S.244A OF T HE ACT. THE TRANSIENT ERROR IN THE INTERVENING PERIOD WHICH RESULTED IN EXCESS TAX PAID STOOD CORRECTED AT A LATER POINT OF TIME. THUS, THE ASSE SSEE WOULD BE ENTITLED THE CLAIM UNDER S.244A FROM THE ORIGINAL DATE. THE CIT(A) HAS RIGHTFULLY CONCLUDED THE ISSUE IN FAVOUR OF ASSESSEE. HENCE, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE. 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. THIS ORDER PRONOUNCED IN OPEN COURT ON 21 / 0 9 /201 7 SD/- SD/- () ( ) (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 21/ 09 /2017 3..),.)../ T.C. NAIR, SR. PS ITA NO.1384/AHD /2014 ACIT VS. NATIONAL DAIRY DEVELOPMENT BOARD ASST.YEAR 2007-08 - 11 - !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &#% / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A)-I, BARODA 5. 89:+)56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. :<* / GUARD FILE. / BY ORDER, &8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 18.9.17 (DICTATION-PAD 10- PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.9.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.21.9.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 21.9.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER