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TMI Blog2000 (6) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... on the amount of refund arises on account of waiver of interest under ss. 139(8) and 217 of IT Act." 3. The brief facts of the case are that in all these assessment years interest under ss. 139 and 217 was charged. However, the CIT, Jaipur, waived the interest charged under ss. 139 and 217 by an order dt. 28th Jan., 1993. Consequently the AO allowed the refund arising out of the interest payment. The assessee made a claim under s. 154 for allowing interest under s. 244(1A) on the refund which was refused by the AO on the ground that s. 244(1A) envisaged interest only on tax penalty and not on interest. As per definition given in s. 2(43), it is income-tax chargeable and does not include any interest. Thus the AO was of the view that the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT vs. Ambat Echukutty Menon (1988) 67 CTR (Ker) 287 : (1988) 173 ITR 581 (Ker); (6) Somany Pilkingtons Ltd. vs. IAC (1990) 34 ITR 531 (Del); (7) Suresh B. Jain vs. P.K.P. Nair Ors. (1992) 194 ITR 148 (Bom); and (8) Bharat Commerce Industries Ltd. vs. CIT (1985) 45 CTR (Del) 1 : (1985) 153 ITR 275 (Del). And the Hon'ble Jurisdictional High Court decision in the case of CIT vs. Ayurved Sevashram Ltd. Therefore, the order of the Dy. CIT(A) allowing the interest on interest should be upheld. 7. We have heard the rival submissions of the parties and have perused the material available on record. We find that in a recent case decided by the Hon'ble Madras High Court in the case of CIT vs. Needle Industries (P) Ltd. (1998) 147 CTR ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 233 ITR 473 (MP) [sic-decision in ITA No. 5 is not reported; in D H Secheron, IT Ref. No. is 7 of 1996, decision is dt. 17th Oct., 1996-Ed.] whereby the High Court answered in favour of the assessee and against the Revenue the question whether on the facts and in the circumstances of the case, the Tribunal was justified in law in upholding the order of Dy. CIT(A) directing the AO to allow interest on interest. But until and unless the Hon'ble apex Court reverses the order of the High Court, the decision of the High Court would hold good. In view of the above case laws decided by the various High Courts, we find no infirmity in the order of the Dy. CIT(A) allowing the interest on interest under s. 244(1A) of the IT Act. 8. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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