9911796707
TMI Blog2014 (3) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... On the facts and circumstances of the case, and in law, the ld. CIT(A) erred in ignoring the fact that department had wrongly withheld interest on interest for which your appellant is legally entitled" 2. The assessee vide letter dated 31.5.2013 has taken the additional ground and said ground also relates to issue as to whether assessee is entitled to interest on interest on account of delay on the part of department in payment of interest to the assessee. 3. This appeal is arising out of order passed by AO u/s 154 of the Income Tax Act, 1961 (the Act) dated 25.5.2010. The assessee filed rectification application u/s 154 requesting that the order passed u/s 154 dated 25.2.2002 wherein adjustment for refunds issued time to time of Rs.1,80, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase the Hon'ble Apex Court held that the assessee on account of delay in refunding the amount due to the assessee, is entitle to get compensation. 5. On the other hand, the ld. DR submitted that the issue is squarely covered by the decision of Larger Bench of the Hon'ble Apex Court in the case of CIT V/s Gujarat Fluoro Chemicals in Special Leave Petition ( C ) No.11406 of 2008 order dated 18.9.2013, decided along with other appeals on similar matter and the Hon'ble Apex Court has stated and clarified that the assessee is entitled only to the interest provided under the statute from the revenue in case of delay of refund. The ld. DR referred para 6 of the said order of Hon'ble Apex Court and stated that interpretation placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee and in case there is a delay in payment thereof, the assessee may be entitled to get interest on the said amount due from the department which has been calculated and ascertained and in case the interest has not been calculated and merely there is a delay in payment of the refund, the assessee is entitled to interest as per the provisions of Act i.e. section 244A of the Act and not interest on interest. In view of above, we hold that he issue is squarely covered against the assessee and in favour of the Revenue by the decision of the Hon'ble Apex Court in the case of Gujarat Fluoro Chemicals (supra). Hence, we uphold the order of ld. CIT(A) and reject the grounds of appeal taken by assessee. 8. In the result, the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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