2004 (4) TMI 38 - HC - Income Tax

1. Whether the assessee is entitled to interest under section 244(1A) in respect of interest payments under section 220(2)? - 2. Whether the assessee is entitled to interest under section 244(1A) in respect of interest already due under section 244(1A) on delayed payment of refund? - contention is raised by learned counsel for the petitioner that the assessee is also entitled to get interest under section 244(1A). It is required to be noted that after hearing the matter, learned counsel did not press this issue and, therefore, this petition is required to be allowed only to the aforesaid extent that is to say, that the assessee is entitled to interest under section 244(1A) in respect of the interest payments under section 220(2)

Summary

Issues:
1. Entitlement to interest under section 244(1A) in respect of interest payments under section 220(2) of the Income-tax Act, 1961.
2. Entitlement to interest under section 244(1A) of the Act in respect of interest already due under section 244(1A) on delayed payment of refund.

Analysis:
1. The first issue revolves around the entitlement of the assessee to interest under section 244(1A) concerning interest payments under section 220(2) of the Income-tax Act, 1961. The court referred to a similar question addressed by the Gujarat High Court in a previous case and found in favor of the assessee. The court upheld that the assessee is entitled to interest under section 244(1A) in respect of interest payments under section 220(2) of the Act. The judgment was based on precedents and established legal principles, leading to a decision favoring the assessee.

2. The second issue pertains to the entitlement of the assessee to interest under section 244(1A) in relation to interest already due under section 244(1A) on delayed payment of refund. The learned counsel for the petitioner initially raised this contention but later did not press this issue. Consequently, the petition was allowed only to the extent that the assessee is entitled to interest under section 244(1A) concerning the interest payments under section 220(2) of the Income-tax Act, 1961. The court's decision was influenced by the arguments presented and the subsequent withdrawal of the contention by the petitioner's counsel.

In conclusion, the judgment addressed the issues raised by the petitioner regarding the entitlement to interest under section 244(1A) in specific scenarios under the Income-tax Act, 1961. The court's decision was guided by legal precedents and arguments presented during the proceedings, ultimately leading to a favorable outcome for the assessee in terms of interest payments.