KEJRIWAL RETREAT P.LTD, MUMBAI V. ITO 8(2)(2), MUMBAI

ITA 5680/MUM/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9263 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 1999-2000
• Appeal Filed On: 10-09-2013
• Court: TRIBUNAL
• Department Lawyers: ASGHAR ZAIN
• Assessee Lawyers: RACHANA KANOI
• Keywords: Question of law
• Section: 244A; 147; 54; 263; 154

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A , BENCH MUMBAI , BEFORE : SHRI R.C.SHARMA, AM & SHRI SANJAY GARG , JM ITA NO. 5680 / MUM/20 1 3 ( ASSESSMENT YEAR : 1999 - 2000 ) KEJRIWAL RETREAT PRIVATE LIMITED (FORMERLY KNOWN AS KEJRIWAL BEVERAGES PVT. LTD.), C/O S A R A & ASSOCIATES, 202 MAY BUILDING, 297/299/301, PRINCES STREET, NEAR MARINE LINES FLYOVER, MUMBAI - 400 002 VS. ITO 8(2)(2), MUMBAI PAN/GIR NO. : A A ACK 2021 J ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : MS. RACHANA K ANOI /REVENUE BY : SHRI ASGHAR ZAIN DATE OF HEARING : 1 9 / 0 1 /201 5 DATE OF PRONOUNCEMENT : 11/03 /2015 O R D E R PER R.C.SHARMA ( A .M.) : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), DATED 15 - 2 - 2 013 FOR ASSESSMENT YEAR 1999 - 2000 IN THE MATTER OF ORDER PASSED U/S. 2 54 OF THE I.T.ACT DATED 11 - 10 - 2010 . 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO COMPUTATION OF INTEREST U/S.244A. 3 . RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A COMPANY. IN THE CASE OF ASSESSEE, AN ITA NO. 5680 /20 1 3 2 ORDER GIVING EFFECT TO ITATS ORDER WAS PASSED ON 11 - 10 - 2010 UNDER WHICH A REFUND OF RS.9,58,025/ - WAS DETERMINED. WHILE CALCULATING THE INTEREST U/S.244A, THE AO DID NOT ALLOW INTEREST U/S.244A ON THE INTEREST PORTION OF THE REFUND ISSUED EARLIER. TH US , THE AO DID NOT ALLOW INTEREST ON INTEREST. HENCE, AS AGAINST THE INTEREST CLAIM OF ASSESSEE AT RS.9,47,227/ - U/S.244A, INTEREST HAS BEEN COMPUTED BY AO AT RS.13,75,948/ - . THUS, AS PER ASS ESSEE, INTEREST U/S.244A HAS BEEN SHORT ALLOWED BY A O AT RS.5,71,279/ - . 4 . BY THE IMPUGNED ORDER, THE CIT(A) CONFIRMED THE ACTION OF THE AO AFTER HAVING THE FOLLOWING OBSERVATIONS : - I HAVE CONSIDERED THE ABOVE SUBMISSIONS OF THE APPELLANT AND THE ORDER OF THE AO. SINCE, THE ISSUE RELATED TO WORKING OF INTEREST WAS FACTUAL, THE COMMENTS OF THE AO WERE CALLED FOR VIDE LETTER NO. CIT(A} - 17/APPELLATE PROC./2011 - 12, DATED 11.10.2011 WHEREIN THE SUBMISSIONS OF THE APPELLANT WERE SENT TO THE AO FOR HIS COMMENTS . THE COMMENTS OF THE AO WERE RECEIVED VIDE LETTER NO. ITO/8(2}(2}/REMAND/KEJRIWAL BEVERAGES/2012 - 13, DATED 09.01.2013 FORWARDED BY THE ADDL, CIT VIDE LETTER NO. ADDL.CIT - 8(2}/REMAND/2012 - 13, DATED 14.0L.2013. THE REMAND REPORT OF THE AO STATES AS UNDER: '2. IN THIS CASE THE ASSESSEE IS SEEKING ADDITIONAL INTEREST OF RS. 6,77,250/ - ON THE INTEREST OF RS. 17,30,068/ - AND RS. 10,75,847/ - RECEIVED BY HIM U/S. 244A OF THE ACT THROUGH THE REFUNDS OF RS. 32,80,797/ - , RS. 9,07,186/ - AND RS. 9,58,935/ - RECEIVED O N 26.03.2002, 11.11.2003 AND 11.10.2010 RESPECTIVELY. THE ASSESSEE IS RELYING ON THE SUPREME COURT'S DECISION IN CASE OF M/S. SANDVIK ASIA LIMITED VS. CIT (2006) 280 ITR 643 WHEREIN THE HON'BLE COURT DIRECTED TO PAT COMPENSATION IN THE FORM OF INTEREST FOR INORDINATE DELAY IN PAYING INTEREST ON THE ADVANCE TAX TO THE ASSESSEE. THE CONTENTION OF THE ASSESSEE IS NOT ACCEPTABLE FOR THE FOLLOWING REASONS: (I) THE ASSESSEE IS HEAVILY RELYING UPON THE ABOVE QUOTED DECISION OF THE APEX COURT. HOWEVER, HON'BLE SU PREME COURT IN ITS LATEST ORDER DATED 23.08.2012 (COPY ENCLOSED) PASSED IN THE CASE OF M/S. CIT VS. GUJARAT FLOURO CHEMICALS, REPORTED IN 24 TAXMAN 338 (SC) (2012) HAS OBSERVED AS UNDER: 'WE HAVE SERIOUS DOUBTS ABOUT THE CORRECTNESS OF THE JUDGEMENT IN S ANDVIK ASIA (SUPRA). IN OUR VIEW THE JUDGEMENT OF THIS COURT IN THE ITA NO. 5680 /20 1 3 3 CASE OF MODI INDUSTRIES LIMITED VS. COMMISSIONER OF INCOME TAX, 1996 (6) SSC 396 CORRECTLY HOLDS THAT ADVANCE TAX OR TDS LOSES ITS IDENTITY AS SOON AS IT IS ADJUSTED AGAINST THE LIABILITY CREATED BY THE ASSESSMENT ORDER AND BECOMES TAX PAID PURSUANT TO THE ASSESSME NT ORDER.....' ': .... WE SAY NO MORE. WITH RESPECT, WE ARE OF THE VIEW THAT SANDVIK ASIA (SUPRA) HAS NOT BEEN CORRECTLY DECIDED. IN THE CIRCUMSTANCES, WE DIRECT THE REGISTRY TO PLACE THIS MATTER BEFORE HON'BLE THE CHIEF JUSTICE ON THE ADMINISTRATIVE SIDE FOR APPROPRIATE ORDERS.' THUS, IT IS REQUESTED THAT NO RELIEF MAY BE GRANTED SOLELY ON THE BASIS OF DECISION OF THE HON'BLE SUPREME COURT RELIED UPON BY THE ASSESSEE. SECOND LY, THE DECISION RELIED UPON BY THE ASSESSEE IS DISTINGUISHABLE ON FACTS AND NOT APPLICABLE TO THE FACTS OF THE CASE. THE HON'BLE SUPREME COURT'S IN THE DECISION OF SANDVIK ASIA WAS FOR AY 1977 - 78 TO AY 1982 - 83 AND WAS DEALING WITH THE PROVISIONS OF SECTIO N 214, 237, 243, 244 AND 244(LA) OF THE ACT. THE PROVISIONS OF THESE SECTIONS ARE NOT APPLICABLE FROM THE ASSESSMENT YEAR BEGINNING FROM AY 1989. THE ASSESSEE IS SEEKING INTEREST FOR AY 1999 - 2000 WHICH IS GOVERNED BY THE PROVISIONS OF SECTION 244A OF THE A CT. ALSO, THE COURT WAS DEALING WITH THE INTEREST ON INTEREST PAID ON TH E ADVANCE TAX. WHILE IN THE INSTANT CASE T HE ASSESSEE IS SEEKING INTEREST ON INTEREST PAID AGAINST THE TAXES PAID IN REGULAR DEMAND AFTER ASSESSMENT. MOREOVER, THE HON'BLE COURT GRANTE D INTEREST AS A COMPENSATION FOR INORDINATE DELAY OF TWO DECADE IN PAYING THE INTEREST AS PER THE PROVISIONS OF ACT AND UNLAWFULLY WITHHOLDING THE ASSESSEE'S MONEY. THESE FACTS ARE NOT APPLICABLE TO THE CASE OF INSTANT ASSESSEE. THEREFORE, THE RATIO OF T HE DECISION RELIED UPON BY T HE ASSESSEE IS NOT APPLICABLE TO THE CASE ON HAND. (III) THIRDLY, THE DECISION RELIED UPON BY THE ASSESSEE WAS DELIVERED IN SLP FILED AGAINST THE ORDER OF BOMBAY HIGH COURT IN WRIT PETITION. THUS, THE DOCTRINE OF PRECEDENCE IS NOT APPLICABLE TO THE WRIT JURISDICTION TO BE TREATED AS LAW OF THE LAND AND FOLLOWED IN SUBSEQUENT CASES. THIS IS ALSO EVIDENT FROM THE FINAL DIRECTIONS OF THE HON'BLE COURT IN PARA 43 OF THE ORDER WHICH IS REPRODUCED A SUNDER: 'THE ASSESSMENT YEARS IN QUESTION IN THE FOUR APPEALS ARE THE ASSESSMENT YEARS 1977 - 78, 1978 - 79, 1981 - 82 AND 1982 - 83. ALREADY THE MATTER WAS PENDING FOR MORE THAN TWO DECADES. WE, THEREFORE, DIRECT THE RESPONDENTS HEREIN TO PAY THE INTEREST ON RS.40,84,906/ - (ROUNDED OFF TO RS. 4 0,84,900/ - ) SIMPLE INTEREST @ 9 PER CENT P.A. FROM 3 1 ST MARCH, 1986 TO 2 7 TH MARCH, 1998 WITHIN ONE MONTH FROM TODAY FILING WHICH THE DEPARTMENT SHALL PAY THE PENALTY INTEREST @ 15 PER CENT P.A. FOR THE ABOVE SAID PERIOD.' ITA NO. 5680 /20 1 3 4 (IV) FINALLY, AS PER THE PROVISI ONS OF SECTION 244A(I)(B) OF THE ACT THE INTEREST IS PAYABLE ONLY ON THE TAX AND PENALTY. THE 'TAX' DEFINED UNDER SECTION 2(43) OF THE ACT INCLUDE ONLY INCOME TAX. THUS, THE REQUEST BY THE ASSESSEE CANNOT BE ACCEDED TO UNDER THE EXISTING PROVISIONS OF INCO ME TAX ACT AS APPLICABLE TO AY 1999 - 2000. IN THE LIGHT OF THE ABOVE DISCUSSION, THE ASSESSEE APPEAL TO GRANT INTEREST ON INTEREST MAY NOT BE ALLOWED.' 4.4 A COPY OF THIS REPORT WAS GIVEN TO THE APPELLANT AND HIS REPLY WAS RECEIVED ON 12.02.2013 WHICH I S AS UNDER: 'THE AO RELIED UPON THE RULING IN THE CASE OF CIT VS. GUJARAT FLURO CHEMICAL REPORTED IN 24 TAXMANN 338 (SC) (2012) WHERE THE AUTHENTICITY OF RULING IN THE CASE OF SANDVIK ASIA, HAS BEEN DOUBTED, AND CHIEF JUSTICE HAS BEEN REQUESTED FOR APPRO PRIATE ORDER AT THE ADMINISTRATIVE SIDE. IN THIS REGARD, WE MOST RESPECTFULLY SUBMIT THAT TILL TODAY RULING GIVEN BY THE SANDVIK ASIA HAS NOT BEEN OVERRULED. FURTHER, AFTER THE RULING GIVEN IN SANDVIK ASIA, NO CHANGE HAS BEEN BROUGHT IN THE STATUTE BOOK. T HEREFORE, AS ON DATE SANDVIK, ASIA RULING HOLDING THE FIELD AND FURTHER, THIS BEING RULING OF THE HON'BLE SUPREME COURT OF INDIA, THIS BEING THE LAW OF LAND. THEREFORE, OBJECTION RAISED IN THE REMAND REPORT IS NOT MAINTAINABLE. THEREFORE, WE WOULD REQUEST YOUR HONOUR TO ALLOW THE INTEREST U/S. 244A ON INTEREST. WE FURTHER SUBMIT THAT WHEN THE DEPARTMENT ITSELF CHARGE INTEREST ON INTEREST WHY THE SAME ,SHOULD NOT BE ALLOWED TO THE ASSESSEE. WE WOULD ALSO DRAW YOUR KIND ATTENTION TOWARDS VARIOUS OTHER RULIN GS RELIED UPON UNDER OUR LETTER DATED 09.09.2011. IN VIEW OF THE ABOVE, WE WOULD REQUEST YOUR HONOUR TO DIRECT THE AO TO ALLOW INTEREST UH 244A TILL DATE AND TO ISSUE FURTHER REFUND AS CLAIMED.' 4.5 I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT AND THE ORDER OF THE AO. THE HON'BLE SUPREME COURT IN THE CASE OF CRT, GUJARAT VS. GUJARAT FLOURA CHEMICALS ON 23.08.2012 HAS MENTIONED AS UNDER: 'WE HAVE SERIOUS DOUBTS ABOUT THE CORRECTNESS OF THE JUDGEMENT IN SANDVIK ASIA (SUPRA). I N OUR VIEW THE JUDGEMEN T OF THIS COURT IN THE CASE OF MODI INDUSTRIES LIMITED VS. COMMISSIONER OF INCOME TAX, 1996 (6) SSC 396 CORRECTLY HOLDS THAT ADVANCE TAX OR TDS LOSES ITS IDENTITY AS SOON AS IT IS ADJUSTED AGAINST THE LIABILITY CREATED BY THE ASSESSMENT ORDER AND BECOMES T AX PAID PURSUANT TO THE ASSESSMENT ORDER. IF ADVANCE TAX OR TDS LOSES ITS IDENTITY AND BECOMES TAX PAID ON THE PASSING OF THE A SSESSMENT ORDER, THEN, IS THE ASSESSEE NOT ENTITLED TO INTEREST UNDER THE RELEVANT PROVISIONS OF THE ACT . IN THIS CONNECTION, W E MAY REFER TO THE PROVISIONS OF SECTION 195(1), 195A, 214, 219, 237, 243 AND 244 WHICH STOOD AT THE RELEVANT TIME. THEY ARE AS UNDER: ITA NO. 5680 /20 1 3 5 195. (1) ANY PERSON RESPONSIBLE FOR PAYING TO A NON - RESIDENT, NOT BEING A COMPANY, OR TO A FOREIGN COMPANY, ANY INTERES T OR ANY OTHER SUM CHARGEABLE UNDER THE PROVISIONS OF THIS ACT (NOT BEING INCOME CHARGEABLE UNDER THE HEAD 'SALARIES' SHALL, AT THE TIME OF CREDIT OF SUCH INCOME TO THE ACCOUNT OF THE PAYEE OR AT THE TIME OF PAYMENT THEREOF IN CASH OR BY THE ISSUE OF A CHE QUE OR DRAFT OR BY ANY OTHER MODE, WHICHEVER IS EARLIER, DEDUCT INCOME - TAX THEREON AT THE RATES IN FORCE. EXPLANATION . - FOR THE PURPOSES OF THIS SECTION, WHERE ANY INTEREST OR OTHER SUM AS AFORESAID IS CREDITED TO ANY. ACCOUNT, WHETHER CALLED 'INTEREST PA YABLE ACCOUNT' OR 'SUSPENSE ACCOUNT' OR BY A NY OTHER NAME, IN THE BOOKS OF ACCOUNT OF THE PERSON LIABLE TO PAY SUCH INCOME, SUCH CREDITING SHALL BE DEEMED TO BE CREDIT OF SUCH INCOME TO THE ACCOUNT OF THE PAYEE AND THE PROVISIONS OF THIS SECTION SHALL APPL Y ACCORDINGLY. 195A. WHERE, UNDER AN AGREEMENT OR OTHER ARRANGEMENT, THE TAX CHARGEABLE ON ANY INCOME REFERRED TO IN THE FOREGOING PROVISIONS OF THIS CHAPTER IS TO BE BORNE BY THE PERSON BY WHOM THE INCOME IS PAYABLE, THEN, FOR THE PURPOSES OF DEDUCTION OF TAX UNDER THOSE PROVISIONS SUCH INCOME SHALL BE INCREASED TO SUCH AMOUNT AS WOULD, AFTER DEDUCTION OF TAX THEREON AT THE RATES IN FORCE FOR THE FINANCIAL YEAR IN WHICH SUCH INCOME IS PAYABLE, BE EQUAL TO THE NET AMOUNT PAYABLE UNDER SUCH AGREEMENT OR AR RANGEMENT. 214. (1) THE CENTRAL GOVERNMENT SHALL PAY SIMPLE INTEREST AT [FIFTEEN) PER CENT PER ANNUM ON THE AMOUNT BY WHICH THE AGGREGATE SUM OF ANY INSTALMENTS OF ADVANCE TAX PAID DURING ANY FINANCIAL YEAR IN WHICH THEY ARE PAYABLE UNDER SECTIONS 207 TO 213 EXCEEDS THE AMOUNT OF THE 5[ASSESSED TAX) FROM THE 1ST DAY OF APRIL, NEXT FOLLOWING THE SAID FINANCIAL YEAR TO THE DATE OF THE REGULAR ASSESSMENT FOR THE ASSESSMENT YEAR IMMEDIATELY FOLLOWING THE SAID FINANCIAL YEAR, AND WHERE ANY SUCH INSTALMENT IS P AID AFTER THE EXPIRY OF THE FINANCIAL YEAR DURING WHICH IT IS PAYABLE BY REASON OF THE PROVISIONS OF SECTION 213, INTEREST AS AFORESAID SHALL ALSO BE PAYABLE ON THAT INSTALMENT FROM THE DATE OF ITS PAYMENT TO THE DATE OF REGULAR ASSESSMENT: PROVIDED THAT IN RESPECT OF ANY AMOUNT REFUNDED ON A PROVISIONAL ASSESSMENT UNDER SECTION 141A, NO INTEREST SHALL BE PAID FOR ANY PERIOD AFTER THE DATE OF SUCH PROVISIONAL ASSESSMENT. (LA) WHERE AS A RESULT OF AN ORDER UNDER SECTION 147 OR SECTION 154 OR SECTION 155 OR SECTION 250 OR SECTION 254 OR SECTION 260 OR SECTION 262 OR SECTION 263 OR SECTION 264 8[OR AN ORDER OF THE SETTLEMENT COMMISSION UNDER SUB - SECTION (4) OF SECTION 245D, THE AMOUNT ON WHICH INTEREST WAS PAYABLE UNDER SUB - SECTION (1) HAS BEEN INCREASED OR REDUCED, AS THE CASE MAY BE, THE INTEREST SHALL BE INCREASED OR REDUCED ACCORDINGLY, AND IN A CASE WHERE THE INTEREST IS REDUCED, THE 9[ASSESSING) OFFICER SHALL SERVE ON THE ASSESSEE, A NOTICE OF DEMAND IN THE PRESCRIBED FORM SPECIFYING THE AMOUNT OF THE EXCESS INTEREST PAYABLE AND REQUIRING HIM TO PAY SUCH AMOUNT; AND SUCH NOTICE OF DEMAND SHALL BE DEEMED TO BE A ITA NO. 5680 /20 1 3 6 NOTICE UNDER SECTION 156 AND THE PROVISIONS OF THIS ACT SHALL APPLY ACCORDINGLY. (2) ON ANY PORTION OF SUCH AMOUNT WHICH IS REFUNDED UNDER THI S CHAPTER, INTEREST SHALL BE PAYABLE ONLY UP TO THE DATE ON WHICH THE REFUND WAS MADE. 219. ANY SUM, OTHER THAN A PENALTY OR INTEREST, PAID BY OR RECOVERED FROM AN ASSESSEE AS ADVANCE TAX IN PURSUANCE OF THIS CHAPTER SHALL BE TREATED AS A PAYMENT OF TAX IN RESPECT OF THE INCOME OF THE PERIOD WHICH WOULD BE THE PREVIOUS YEAR FOR AN ASSESSMENT FOR THE ASSESSMENT YEAR NEXT FOLLOWING THE FINANCIAL YEAR IN WHICH IT WAS PAYABLE, AND CREDIT THEREFOR SHALL BE GIVEN TO THE ASSESSEE IN THE REGULAR ASSESSMENT: PROVI DED THAT WHERE, BEFORE THE COMPLETION OF THE REGULAR ASSESSMENT, A PROVISIONAL ASSESSMENT IS MADE UNDER SECTION 141A, THE CREDIT SHALL BE GIVEN ALSO IN SUCH PROVISIONAL ASSESSMENT. 237. IF ANY PERSON SATISFIES THE [ASSESSING) OFFICER THAT THE AMOUNT OF T AX PAID BY HIM OR ON HIS BEHALF OR TREATED AS PAID BY HIM OR ON HIS BEHALF FOR ANY ASSESSMENT YEAR EXCEEDS THE AMOUNT WITH WHICH HE IS PROPERLY CHARGEABLE UNDER THIS ACT FOR THAT YEAR, HE SHALL BE ENTITLED TO A REFUND OF THE EXCESS. 243. (1) IF THE [ASSE SSING) OFFICER DOES NOT GRANT THE REFUND, - (A) IN ANY CASE WHERE THE TOTAL INCOME OF THE ASSESSEE DOES NOT CONSIST SOLELY OF INCOME FROM INTEREST ON SECURITIES OR DIVIDENDS, WITHIN THREE MONTHS FROM THE END OF THE MONTH IN WHICH THE TOTAL INCOME IS DETER MINED UNDER THIS ACT, AND (B) IN ANY OTHER CASE, WITHIN THREE MONTHS FROM THE END OF THE MONTH IN WHICH THE CLAIM FOR REFUND IS MADE UNDER THIS CHAPTER, THE CENTRAL GOVERNMENT SHALL PAY THE ASSESSEE SIMPLE INTEREST AT [FIFTEEN) PER CENT PER ANNUM ON TH E AMOUNT DIRECTED TO BE REFUNDED FROM THE DATE IMMEDIATELY FOLLOWING THE EXPIRY OF THE PERIOD OF THREE MONTHS AFORESAID TO THE DATE OF THE ORDER GRANTING THE REFUND. EXPLANATION. - IF THE DELAY IN GRANTING THE REFUND WITHIN THE PERIOD OF THREE MONTHS AFORE SAID IS ATTRIBUTABLE TO THE ASSESSEE, WHETHER WHOLLY OR IN PART, THE PERIOD OF THE DELAY ATTRIBUTABLE TO HIM SHALL BE EXCLUDED FROM THE PERIOD FOR WHICH INTEREST IS PAYABLE. (2) WHERE ANY QUESTION ARISES AS TO THE PERIOD TO BE EXCLUDED FOR THE PURPOSES O F CALCULATION OF INTEREST UNDER THE PROVISIONS OF THIS SECTION, SUCH QUESTION SHALL BE DETERMINED BY THE [CHIEF COMMISSIONER OR COMMISSIONER] WHOSE DECISION SHALL BE FINAL. (3) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY IN RESPECT OF ANY ASSESSMENT F OR THE ASSESSMENT YEAR COMMENCING ON THE 1ST DAY OF APRIL, 1989 OR ANY SUBSEQUENT ASSESSMENT YEARS. ITA NO. 5680 /20 1 3 7 244. (1) WHERE A REFUND IS DUE TO THE ASSESSEE IN PURSUANCE OF AN ORDER REFERRED TO IN SECTION 240 AND THE [ASSESSING] OFFICER DOES NOT GRANT THE REFUND W ITHIN A PERIOD OF 3[THREE MONTHS FROM THE END OF THE MONTH IN WHICH SUCH ORDER IS PASSED], THE CENTRAL GOVERNMENT SHALL PAY TO THE ASSESSEE SIMPLE INTEREST AT 4[FIFTEEN] PER CENT PER ANNUM ON THE AMOUNT OF REFUND DUE F R O M THE DATE IMMEDIATELY FOLLOWING THE EXPIRY OF THE PERIOD OF 5[THREE] MONTHS AFORESAID TO THE DATE ON WHICH THE REFUND IS GRANTED. (1A) WHERE THE WHOLE OR ANY PART OF THE REFUND REFERRED TO IN SUB - SECTION (1) IS DUE TO THE ASSESSEE, AS A RESULT OF ANY AMOUNT HAVING BEEN PAID BY HIM AFTER T HE 31ST DAY OF MARCH, 1975, IN PURSUANCE OF ANY ORDER OF ASSESSMENT OR PENALTY AND SUCH AMOUNT OR ANY PART THEREOF HAVING BEEN FOUND IN APPEAL OR OTHER PROCEEDING UNDER THIS ACT TO BE IN EXCESS OF THE AMOUNT WHICH SUCH ASSESSEE IS LIABLE TO PAY AS TAX OR PENALTY, AS THE CASE MAY BE, UNDER THIS ACT, THE CENTRAL GOVERNMENT SHALL PAY TO SUCH ASSESSEE SIMPLE INTEREST AT THE RATE SPECIFIED IN SUB - SECTION (1) ON THE AMOUNT SO FOUND TO BE IN EXCESS FROM THE DATE ON WHICH SUCH AMOUNT WAS PAID TO THE DATE ON WHICH THE REFUND IS GRANTED: PROVIDED THAT, WHERE THE AMOUNT SO FOUND TO BE IN EXCESS WAS PAID IN INSTALMENTS, SUCH INTEREST SHALL BE PAYABLE ON THE AMOUNT OF EACH SUCH INSTALMENT OR ANY PART OF SUCH INSTALMENT, WHICH WAS IN EXCESS, FROM THE DATE ON WHICH SUCH INSTALMENT WAS PAID TO THE DATE ON WHICH THE REFUND IS GRANTED: PROVIDED FURTHER THAT NO INTEREST UNDER THIS SUB - SECTION SHALL BE PAYABLE FOR A PERIOD OF ONE MONTH FROM THE DATE OF THE PASSING OF THE ORDER IN APPEAL OR OTHER PROCEEDING: PROVIDED ALSO THAT WHERE ANY INTEREST IS PAYABLE TO AN ASSESSEE UNDER THIS SUB - SECTION, NO INTEREST UNDER SUB - SECTION (1) SHALL BE PAYABLE TO HIM IN RESPECT OF THE AMOUNT SO FOUND TO BE IN EXCESS. (2) WHERE A REFUND IS WITHHELD UNDER THE PROVISIONS OF SECTION 241, THE CENTRAL GOVERNMENT SHALL PAY INTEREST AT THE AFORESAID RATE ON THE AMOUNT OF REFUND ULTIMATELY DETERMINED TO BE DUE AS A RESULT OF THE APPEAL OR FURTHER PROCEEDING FOR THE PERIOD COMMENCING AFTER THE EXPIRY OF 8[THREE MONTHS FROM THE END OF THE MONTH IN W HICH THE ORDER REFERRED TO IN SECTION 241 IS PASSED] TO THE DATE THE REFUND IS GRANTED. (3) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY IN RESPECT OF ANY ASSESSMENT FOR THE ASSESSMENT YEAR COMMENCING ON THE 1ST DAY OF APRIL, 1989, OR ANY SUBSEQUENT AS SESSMENT YEARS.' WE SAY NO MORE. WITH RESPECT, WE ARE OF THE VIEW THAT SANDVIK ASIA (SUPRA) HAS NOT BEEN CORRECTLY DECIDED. IN THE CIRCUMSTANCES, WE DIRECT THE REGISTRY TO PLACE THIS MATTER BEFORE HON'BLE THE CHIEF JUSTICE ON THE ADMINISTRATIVE SIDE FOR APPROPRIATE ORDERS. THE REGISTRY IS ALSO DIRECTED TO PLACE SIMILAR MATTERS, WHICH ARE PENDING IN THIS COURT, ALONG WITH THIS PETITION (EMPHASIS SUPPLIED).' ITA NO. 5680 /20 1 3 8 4.6 THE SUPREME COURT HAS MENTIONED IN THE ABOVE CASE THAT THE CASE OF MODI INDUSTRIES LTD. VS. C I T REPORTED [1995] 6 SCC 396) HOLDS THE CORRECT VIEW IN THE MATTER. FURTHER, THE HON'BLE DELHI HIGH COURT IN THE CASE OF THE MOTOR & GENERAL FINANCE LTD. VS C IT - 6, DELHI HAS HELD ON 30.10.2009 AS UNDER: '13. WHEN WE EXAMINE THE FACTS OF THE PRESENT CASE, WE FEEL THAT THE AFORESAID JUDGEMENT OF THE SC WOULD NOT COME TO THE AID OF THE ASSESSEE AND PERMIT THE ASSESSEE TO CLAIM INTEREST ON INTEREST IN THE GIVEN SITUATION. AS FAR AS THE APPEALS AT HANDS ARE CONCE R NED, IT IS NOT IN DISPUTE THAT ON FILING THE RE T URN BY THE ASSESSEE AND PROCESSING THE CASE UNDER SECTION 143(1)(A), THE EXCESS AMOUNT OF TDS AND ADVANCE TAX PAID BY THE ASSESSEE WAS REFUNDED ALONG WITH INTEREST U/S. 244(A) WITHIN THE PRESCRIBED TIME PERIOD. WHEN THE ASSESSMENT ORDERS WERE PASSED U/S. 1 43(3) OF THE ACT AND THE ASSESSEE WAS CALLED UPON TO MAKE THE PAYMENTS AS PER THE DEMAND MADE ON THE BASIS OF THE ASSESSMENT ORDER, THE ASSESSEE HAS STARTED MAKING THE PAYMENTS IN INSTALMENTS. IT HAD NOT COMPLETED THE PAYMENTS TILL THE DECISION OF CIT(A). THOUGH THE CIT(A) REDUCED THE DEMAND, BUT EVEN AS PER THE REDUCED DEMANDS, CERTAIN PAYMENTS WERE STILL DUE. IT IS ONLY AFTER THE ORDERS OF THE TRIBUNAL THAT THE REFUNDS BECAME PAYABLE. THE APPEAL EFFECT, I.E. THE EFFECT TO THE ORDER OF THE TRIBUNAL, WAS GI VEN BY THE AO AND THE AMOUNT WHICH WAS DETERMINED, TO WHICH THE ASSESSEE HAD BECOME ENTITLED AS REFUND WAS PAID IN ENTIRETY ALONG WITH INTEREST WITHIN THE STATUTORY PERIOD. IN THIS BACKGROUND, LET AS SCAN THROUGH THE RELEVANT PROVISIONS RELATING TO REFUND OF TAX CONTAINED IN SECTIONS 240, 243 AND 244, WHICH ARE REPRODUCED BELOW: 240. REFUND ON APPEAL, ETC. WHERE, AS A RESULT OF ANY ORDER PASSED IN APPEAL OR OTHER PROCEEDING UNDER THIS ACT, REFUND OF ANY AMOUNT BECOMES DUE TO THE ASSESSEE, THE ASSESSING OFFICER SHALL, EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, REFUND THE AMOUNT TO THE ASSESSEE WITHOUT HIS HAVING TO MAKE ANY CLAIM IN THAT BEHALF: PROVIDED THAT WHERE, BY THE ORDER AFORESAID, - (A) AN ASSESSMENT IS SET ASIDE OR CANCELLED AND AN ORDER OF FR ESH ASSESSMENT IS DIRECTED TO BE MADE, THE REFUND: IF ANY, SHALL BECOME DUE ONLY ON THE MAKING OF SUCH FRESH ASSESSMENT ; (B) THE ASSESSMENT IS ANNULLED, THE REFUND SHALL BECOME DUE ONLY OF THE AMOUNT, IF ANY, OF THE TAX PAID IN EXCESS OF THE TAX CHARGEAB LE ON T HE TOTAL INCOME RETURNED BY THE ASSESSEE. 243. INTEREST ON DELAYED REFUNDS - (L) IF THE ASSESSING OFFICER DOES NOT GRANT THE REFUND, - (A) IN ANY CASE WHERE THE TOTAL INCOME OF THE ASSESSEE DOES NOT CONSIST SOLELY OF INCOME FROM INTEREST ON SECURIT IES OR DIVIDENDS, WITHIN THREE MONTHS FROM THE END OF THE MONTH IN WHICH THE TOTAL INCOME IS DETERMINED UNDER THIS ACT, AND ITA NO. 5680 /20 1 3 9 (B) IN ANY OTHER CASE, WITHIN THREE MONTHS FROM THE END OF THE MONTH IN WHICH THE CLAIM FOR REFUND IS MADE UNDER THIS CHAPTER, THE CENTRAL GOVERNMENT SHALL PAY THE ASSESSEE SIMPLE INTEREST AT FIFTEEN PER CENT PER ANNUM ON THE AMOUNT DIRECTED TO BE REFUNDED FROM THE DATE IMMEDIATELY FOLLOWING THE EXPIRY OF THE PERIOD OF THREE MONTHS AFORESAID TO THE DATE OF THE ORDER GRANTING THE REFU ND. EXPLANATION . - IF THE DELAY IN GRANTING THE REFUND WITHIN THE PERIOD OF THREE MONTHS AFORESAID IS ATTRIBUTABLE TO THE ASSESSEE, WHETHER WHOLLY OR IN PART, THE PERIOD OF THE DELAY ATTRIBUTABLE TO HIM SHALL BE EXCLUDED FROM THE PERIOD FOR WHICH INTEREST IS PAYABLE. (2) WHERE ANY QUESTION ARISES AS TO THE PERIOD TO BE EXCLUDED FOR THE PURPOSES OF CALCULATION OF INTEREST UNDER THE PROVISIONS OF THIS SECTION, SUCH QUESTION SHALL BE DETERMINED BY THE CHIEF COMMISSIONER OR COMMISSIONER WHOSE DECISION SHALL B E FINAL. 244. INTEREST ON REFUND WHERE NO CLAIM IS NEEDED - (L) WHERE A REFUND IS DUE TO THE ASSESSEE IN PURSUANCE OF AN ORDER REFERRED TO IN SECTION 240 AND THE ASSESSING OFFICER DOES NOT GRANT THE ,REFUND WITHIN A PERIOD OF THREE MONTHS FROM THE END OF T HE MONTH IN WHICH SUCH ORDER IS PASSED, THE CENTRAL GOVERNMENT SHALL PAY TO THE ASSESSEE SIMPLE INTEREST AT 4[FIFTEEN] PER CENT PER ANNUM ON THE AMOUNT OF REFUND DUE FROM THE DATE IMMEDIATELY FOLLOWING THE EXPIRY OF THE PERIOD OF 5[THREE] MONTHS AFORESAID TO THE DATE ON WHICH THE REFUND IS GRANTED. (LA) WHERE THE WHOLE OR ANY PART OF THE REFUND REFERRED TO IN SUB - SECTION (1) IS DUE TO THE ASSESSEE, AS A RESULT OF ANY AMOUNT HAVING BEEN PAID BY HIM AFTER THE 31ST DAY OF MARCH, 1975, IN PURSUANCE OF ANY ORD ER OF ASSESSMENT OR PENALTY AND SUCH AMOUNT OR ANY PART THEREOF HAVING BEEN FOUND IN APPEAL OR OTHER PROCEEDING UNDER THIS ACT TO BE IN EXCESS OF THE AMOUNT WHICH SUCH ASSESSEE IS LIABLE TO PAY AS TAX OR PENALTY, AS THE CASE MAY BE, UNDER THIS ACT, THE CEN TRAL GOVERNMENT SHALL PAY TO SUCH ASSESSEE SIMPLE INTEREST AT THE RATE SPECIFIED IN SUB - SECTION (1) ON THE AMOUNT SO FOUND TO BE IN EXCESS FROM THE DATE ON WHICH SUCH AMOUNT WAS PAID TO THE DATE ON WHICH THE REFUND IS GRANTED: PROVIDED THAT, WHERE THE AM OUNT SO FOUND TO BE IN EXCESS WAS PAID IN INSTALMENIS, SUCH INTEREST SHALL BE PAYABLE ON THE AMOUNT OF EACH SUCH INSTALMENT OR ANY PART OF SUCH INSTALMENT, WHICH WAS IN EXCESS, FROM THE DATE ON WHICH SUCH INSTALMENT WAS PAID TO THE DATE ON WHICH THE REFUND IS GRANTED: PROVIDED FURTHER THAT NO INTEREST UNDER THIS SUB - SECTION SHALL BE PAYABLE FOR A PERIOD OF ONE MONTH FROM THE DATE OF THE PASSING OF THE ORDER IN APPEAL OR OTHER PROCEEDING: PROVIDED ALSO THAT WHERE ANY INTEREST IS PAYABLE TO AN ASSESSEE UN DER THIS SUB - SECTION, NO INTEREST UNDER SUB - SECTION (1) SHALL BE PAYABLE TO HIM IN RESPECT OF THE AMOUNT SO FOUND TO BE IN EXCESS. ITA NO. 5680 /20 1 3 10 (2) WHERE A REFUND IS WITHHELD UNDER THE PROVISIONS OF SECTION 241, THE CENTRAL GOVERNMENT SHALL PAY INTEREST AT THE AFORES AID RATE ON THE AMOUNT OF REFUND ULTIMATELY DETERMINED TO BE DUE AS A RESULT OF THE APPEAL OR FURTHER PROCEEDING FOR THE PERIOD COMMENCING AFTER THE EXPIRY OF THREE MONTHS FROM THE END OF THE MONTH IN WHICH THE ORDER REFERRED TO IN SECTION 241 IS PASSED TO THE DATE THE REFUND IS GRANTED. 14. AS PER SECTION 240 OF THE ACT, THE AMOUNT OF TAX PAID BY THE ASSESSEE IS TO BE REFUNDED IF SUCH REFUND BECOMES DUE AS A RESULT OF ANY ORDER PASSED IN APPEAL OR IN OTHER PROCEEDINGS. SECTION 243 DEALS WITH INTEREST ON DELAYED REFUNDS. SUCH AN INTEREST BECOMES PAYABLE IF THE AMOUNT IS NOT REFUNDED WITHIN THREE MONTHS FROM THE END OF THE MONTH IN WHICH THE TOTAL INCOME IS DETERMINED OR WITHIN THREE MONTHS FROM THE END OF THE MONTH IN WHICH THE CLAIM FOR THE REFUND IS MADE UNDER THAT CHAPTER. INTEREST PAYABLE IS @ 12% P.A. FROM THE DATE IMMEDIATELY FOLLOWING THE EXPIRY OF THE PERIOD OF THREE MONTHS AFORESAID TO THE DATE OF THE ORDER GRANTING THE REFUND: 15. NO DOUBT, WHEN THE TAX PAID IS MORE THAN WHAT IS DUE, AS A RESUL T OF CERTAIN ADDITIONS ETC. MADE BY THE AO AND IN APPEAL WHEN THOSE ARE DELETED BY THE APPELLATE AUTHORITY, THE REFUND OF THE EXCESS AMOUNT IS TO BE MADE ALONG WITH INTEREST, AS ENVISAGED U/S. 243 OF THE ACT. IT IS ONLY WHEN THIS INTEREST IS NOT REFUNDED T HAT THE ASSESSEE WOULD BECOME ENTITLED TO THE INTEREST ON THE SAID INTEREST AS WELL. THAT WAS THE FACTUAL POSITION IN SANDVIK ASIA (SUPRA). IN CONTRADICTION, WHERE THE INTEREST IS PAID ALONG WITH THE AMOUNT PAYABLE AS REFUND, THE QUESTION OF PAYMENT OF INT EREST ON INTEREST DOES NOT ARISE. PRESENT CASES FALL UNDER THIS CATEGORY. 16. IN THE PRESENT CASE, THE ORDER OF THE TRIBUNAL WOULD DEMONSTRATE THAT IT HAD TAKEN INTO CONSIDE RATION VARIOUS DATES ON WHICH ORDERS WERE PASSED BY THE SUCCESSIVE AUTHORITIES, IN CLUDING THE ORDER OF EFUND. IT HAS ALSO TAKEN INTO CONSIDERATION THE INTEREST ON THE BASIS OF THOSE ORDERS. SUMMARY OF INTEREST ALLOWED ALONG WITH REFUND TO THE ASSESSEE AS PER THE CALCULATIONS MADE BY THE DEPARTMENT IS AS UNDER: - .... ... IT IS CLEAR FROM THE ABOVE THAT THE ASSESSEE HAD BEEN PAID THE REFUND OF THE AMOUNTS COLLECTED/PAID WITHIN THE STATUTORILY PERMISSIBLE PERIODS. 17. ON THE OTHER HAND, IN SANDVIK ASIA LTD. (SUPRA), ONLY REFUND OF EXCESS TAX HAD BEEN GIVEN, BUT NO INTEREST ON REFUND HAD BEEN GIVEN TO THE ASSESSEE ALONG WITH THAT. THIS INTEREST WAS RETAINED BY THE DEPARTMENT FOR A PERIOD OF 12 TO 17 YEARS IN RESPECT OF VARIOUS ASSESSMENT YEARS. IT WAS UNDER THESE CIRCUMSTANCES, THE COURT OPINED THAT WITHHOLDING OF INTEREST WAS ALSO UN JUSTIFIED AS THIS HAD BECOME PART OF THE REFUND DUE TO THE ASSESSEE ALONG WITH TAX, INTEREST ON THIS AMOUNT WAS ALSO PAYABLE ITA NO. 5680 /20 1 3 11 8. IT IS, THUS, MANIFEST THAT AT BOTH THE STAGES, NAMELY, WHILE PASSING INTIMATION U/S. 143(1)(A) OF THE ACT, REFUND ALONG WITH IN TEREST U / S. 244(A), WAS GIVEN OF THE EXCESS TDS AND ADVANCE TAX. AGAIN, AFTER THE ORDERS OF THE TRIBUNAL WERE PASSED AND THE REFUND BECAME PAYABLE AS A CONSEQUENCE THEREOF, THE EXCESS AMOUNT OF TAX WAS REFUNDED ALONG WITH INTEREST PAYABLE THEREUPON U/S. 24 4(A) OF THE ACT. THUS, THE CALCULATIONS ARE NOT DISPUTED, AS OBSERVED BY THE TRIBUNAL ALSO. 19. WHEN THE REFUND OF TAX BECOMES PAYABLE AS A RESULT OF ORDERS PASSED IN APPEAL OR OTHER PROCEEDINGS UNDER THE ACT, THIS REFUND IS TO BE GIVEN ALONG WITH INTERE ST, WHICH IS TO BE CALCULATED AS PER SEC. 244 OF THE ACT. IF THAT INTEREST IS PAID ALONG WITH THE EXCESS TAX, NO FURTHER PAYMENT IS TO BE MADE. IT IS ONLY WHEN THE EXCESS AMOUNT OF TAX IS REFUNDED BUT THE INTEREST IS NOT REFUNDED ALONG THEREWITH, THE RETEN TION OF INTEREST AMOUNT WOULD BECOME UNJUSTIFIED AND INTEREST ON INTEREST WOULD ALSO BECOME PAYABLE. THE REASON IS SIMPLE. IT IS THE TAX WHICH WAS PAID IN EXCESS BY THE ASSESSEE WHICH BECAME REFUNDABLE. THE ASSESSEE WOULD BE COMPENSATED BY PAYING INTEREST THEREUPON. IT IS ONLY WHEN THE INTEREST IS NOT REFUNDED ALONG WITH EXCESS TAX THAT THE WITHHOLDING OF THE SAID INTEREST BECOMES UNJUSTIFIED AND IT BECOMES AN AMOUNT DUE' TO THE ASSESSEE ON WHICH THE ASSESSEE CAN CLAIM FURTHER INTEREST. SUCH A SITUATION HAS NOT HAPPENED IN THE PRESENT CASE AS THE AMOUNT OF INTEREST IS CALCULATED AND REFUNDED ALONG WITH THE REFUNDABLE TAX AMOUNT. 20. THE TRIBUNAL, IN THESE CIRCUMSTANCES, RIGHTLY HELD THAT THE PRINCIPLE LAID DOWN IN SANDVIK ASIA LTD. (SUPRA) WOULD NOT APPLY TO THE PRESENT FACT SITUATION. WE, THEREFORE, ANSWER THE QUESTION OF LAW IN FAVOUR OF THE REVENUE AND AGAINST THE ASSESSEE AND AS A CONSEQUENCE DISMISS ALL THESE APPEALS WITH COSTS QUANTIFIED AT RS. 5000/ - PER APPEAL (EMPHASIS SUPPLIED).' 4.7 THE HON'BLE SUPREME COURT HAS MADE ADVERSE REMARKS ABOUT THE DECISION OF SANDVIK ASIA LTD. IN THE DECISION OF GUJARAT FLUORO CHEMICALS. THEREFORE, FOLLOWING GUJARAT FLOURA CHEMICALS AND THE DECISION OF HON'BLE DELHI HIGH COURT IN CASE OF THE MOTOR & GENERAL FINANCE L TD. VS. CIT, THE STAND OF THE AO IS UPHELD AND THE GROUNDS OF APPEAL OF THE APPELLANT ARE DISMISSED. 5 . WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT ASSESSEE HAS BEEN PAID INTEREST ON THE REFUND DUE WHILE GIVING EFFECT TO THE ORDER OF CIT(A) AND AL SO WHILE GIVING EFFECT TO THE ORDER OF ITAT. THE CONTENTION OF LD. AR WAS THAT INTEREST ON INTEREST SHOULD BE ALLOWED IN VIEW OF THE JUDGEMENT PASSED BY THE HONBLE SUPREME COURT IN THE CASE OF SANDVIK ASIA LTD.280 ITR 643 . WE FOUND THAT THE CIT(A) HAS DEA LT WITH VARIOUS ITA NO. 5680 /20 1 3 12 JUDICIAL PRONOUNCEMENTS WITH REGARD TO ALLOWABILITY OF THE INTEREST 244A. THE CIT(A) HAS APPLIED THE JUDICIAL PRONOUNCEMENTS OF LATEST DECISION OF HONBLE SUPREME COURT IN THE CASE OF GUJARAT FLOURO CHEMICALS, 24 TAXMANN 338 (SC) AND HELD T HAT FACTS OF THE INSTANT CASE ARE DISTINGUISHABLE FROM THE FACTS IN THE CASE OF SANDVIK ASIA LTD. (SUPRA), WHERE ONLY REFUND OF EXCESS TAX HAS BEEN GIVEN BUT NO INTEREST HAS BEEN GIVEN TO THE ASSESSEE ALONG WITH THAT , T HE INTEREST WAS RETAINED BY THE DEPAR TMENT FOR A PERIOD OF 12 TO 17 YEARS IN RESPECT OF VARIOUS ASSESSMENT YEARS. THE HONBLE SUPREME COURT KEEPING IN VIEW THE PECULIAR FACTS AND CIRCUMSTANCES OF THE CASE DIRECTED THE AO TO PAY INTEREST AND OBSERVE D THAT WITHHOLDING OF INTEREST WAS ALSO UNJUS TIFIED AS THIS HAD BECOME PART OF THE REFUND DUE TO THE ASSESSEE ALONG WITH TAX, INTEREST ON THIS AMOUNT WAS ALSO PAYABLE. WE FOUND THAT THE CORRECTNESS OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF SANDVIK ASIA LTD (SUPRA) WAS DOUBTED AND IN THE CASE OF GUJARAT FLOURO CHEMICALS (SUPRA) , WHEREIN IT HAS BEEN OBSERVED AS UNDER : - 'WE HAVE SERIOUS DOUBTS ABOUT THE CORRECTNESS OF THE JUDGEMENT IN SANDVIK ASIA (SUPRA). I N OUR VIEW THE JUDGEMENT OF THIS COURT IN THE CASE OF MODI INDUSTRIES LIMITED VS. C OMMISSIONER OF INCOME TAX, 1996 (6) SSC 396 CORRECTLY HOLDS THAT ADVANCE TAX OR TDS LOSES ITS IDENTITY AS SOON AS IT IS ADJUSTED AGAINST THE LIABILITY CREATED BY THE ASSESSMENT ORDER AND BECOMES TAX PAID PURSUANT TO THE ASSESSMENT ORDER. IF ADVANCE TAX OR TDS LOSES ITS IDENTITY AND BECOMES TAX PAID ON THE PASSING OF THE A SSESSMENT ORDER, THEN, IS THE ASSESSEE NOT ENTITLED TO INTEREST UNDER THE RELEVANT PROVISIONS OF THE ACT . 6 . IN VIEW OF THE ABOVE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A), WHO AFTER APPLYING VARIOUS JUDICIAL PRONOUNCEMENTS CONCLUDED THAT THE AO HAS CORRECTLY ALLOWED INTEREST U/S.244A OF THE ACT. ITA NO. 5680 /20 1 3 13 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 11 TH MARCH, . 201 5 . SD/ - SD/ - ( ) ( SANJAY GARG ) ( ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 11 / 0 3 /201 5 /PKM , PS COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A), MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6 . GUARD FILE. //TRUE COPY//