9911796707
|
Home
Issues involved: The judgment involves the issue of granting interest u/s 244A of the Income Tax Act on delayed refunds and the applicability of the decision in the case of Sandvik Asia Ltd. vs. CIT (280 ITR 643).
Int. Tax Appeal No. 04/Mum/2010 (A.Y. 1999-2000): The assessee contended that interest u/s 244A should be granted on the refund amount due to the delay in giving effect to appellate orders. The Assessing Officer (A.O.) calculated interest on the refund amount but did not grant interest on certain refunded sums. The CIT(A) directed the A.O. to grant interest u/s 244A up to the date of refund issuance. The Tribunal referred to the decision in the case of Sandvik Asia Ltd. v. CIT and held that the assessee is entitled to interest on the delayed refund amount. The Tribunal emphasized that whenever there is a delay in refunding the amount due to the assessee, the department must pay compensation by way of interest. Consequently, the order of the CIT(A) was set aside, and the A.O. was directed to pay interest u/s 244A to the assessee as per law. Int. Tax Appeal No. 05/Mum/2010 (A.Y. 2000-01): The grounds raised by the assessee in this appeal were found to be identical to those in the previous appeal for A.Y. 1999-2000. Following the decision in the earlier appeal, the Tribunal allowed the grounds raised by the assessee in this case as well. Consequently, both appeals filed by the assessee were allowed. In conclusion, the Appellate Tribunal ITAT Mumbai, in the cited judgment, addressed the issue of granting interest u/s 244A of the Income Tax Act on delayed refunds. The Tribunal referred to the decision in the case of Sandvik Asia Ltd. v. CIT and emphasized that the department must pay compensation by way of interest for any delay in refunding amounts lawfully due to the assessee. The Tribunal set aside the CIT(A)'s order and directed the Assessing Officer to pay interest to the assessee as per law in both appeals filed for A.Y. 1999-2000 and A.Y. 2000-01.
|
