DCIT, CHENNAI V. M/s. Indian Overseas Bank, CHENNAI

ITA 246/CHNY/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0892 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 10 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-01-2013
• Assessment Year: 1990-1991
• Appeal Filed On: 03-03-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

ITA NOS.1250 & 1252/MDS/2008 ITA NO.391/MDS/2009, 1906 TO 1909/MDS/2009 ITA NO.246/MDS/2010 7 ONLY REFUND OF EXCESS TAX WAS GIVEN TO THE ASSESSEE BUT INTEREST ON REFUND WAS WITHHELD BY THE DEPARTMENT F OR AN INORDINATE PERIOD OF 12 TO 17 YEARS. THE HONBLE SU PREME COURT OF INDIA HELD THAT THE ASSESSEE WAS ENTITLED TO INTEREST ON THE AMOUNTS OF INTEREST PAID UNDER SECTION 214 A ND/OR SECTION 244. 7. IN THE PRESENT CASE, BOTH THE SIDES HAVE NOT BRO UGHT ON RECORD THE PERIOD FOR WHICH THE INTEREST WAS UNPAID . IN CASE INTEREST IS PAID ALONG WITH THE EXCESS TAX, NO FURT HER PAYMENT IS TO BE MADE. IT IS ONLY IN CASE WHERE EXCESS AMO UNT OF TAX IS REFUNDED WITHOUT INTEREST, THE AMOUNT OF INTERES T RETAINED WOULD BE LIABLE FOR INTEREST I.E. INTEREST ON INTER EST WOULD ALSO BECOME PAYABLE. THE WITHHOLDING OF INTEREST WITHOUT ANY JUSTIFIABLE REASON IN AN ARBITRARY MANNER WILL ENTI TLE THE ASSESSEE TO CLAIM INTEREST ON INTEREST. AS REGARDS THE METHOD OF CALCULATION OF INTEREST IS CONCERNED, WE HOLD TH AT THE ASSESSEE IS ENTITLED TO INTEREST TO BE CALCULATED I N ACCORDANCE WITH THE LAW LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF SANDVIK ASIA LTD(SUPRA). WE, THEREFORE, REM IT THE CASE BACK TO THE ASSESSING OFFICER FOR THE LIMITED PURPOSE OF