9911796707
|
Home
Issues Involved: Appeal against order of CIT(A) regarding interest u/s 244A.
Summary: The appellant contested the order of the CIT(A) which confirmed the Assessing Officer's decision to grant interest u/s 244A at a lower amount than claimed. The appellant argued that as per section 244A, interest on refund is due from the 1st day of April of the Assessment Year to the date of refund. The appellant cited the decision of the Hon'ble Apex court in Sandwik Asia Limited case and a favorable Chennai Tribunal ruling in a previous case. However, the CIT(A) upheld the decision based on the Wheels India Ltd case, stating that interest on interest is not applicable when refunds are granted promptly. During the hearing, the appellant's representative acknowledged that the issue was unfavorable due to the Wheels India Ltd case. The Departmental Representative supported the lower authorities' decisions. The Tribunal noted the disparity between the amount claimed and granted as interest u/s 244A. The CIT(A) had based the decision on the Wheels India Ltd case, emphasizing that interest on interest is not applicable for prompt refunds. The Tribunal concurred with the CIT(A) and dismissed the appeal, as the issue was deemed unfavorable to the appellant based on the Wheels India Ltd case. Therefore, the Tribunal upheld the decision of the lower authorities and dismissed the appeal on the grounds related to interest u/s 244A. (Order pronounced on Friday, the 29th of June, 2012, at Chennai.)
|
