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TMI Blog2014 (11) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... ant to appellate orders that set aside the demand made on the assessee in the assessment and penalty orders for the assessment year 1976-77. During the pendency of the original petition, the petitioner expired and accordingly his legal heirs were impleaded as additional petitioners 2 to 5 as per order dated 11.12.2007 in I.A.No.16112/2007. 2. The brief facts relevant for a disposal of the original petition are as follows: The income tax assessment of the petitioner for the assessment year 1976-77 was completed by an order dated 17.5.1979. The assessment was consequent to a search carried on in the premises of the petitioner, and an amount of Rs. 1,12,700/- had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent. When the representation did not yield any response, the petitioner approached this Court, which, by Ext.P4 judgment, directed the respondent to consider the matter and pass orders thereon. By Ext.P5 order dated 19.9.2001, the respondent found the petitioner entitled to interest under Section 244(1A) for the period from 1.6.1979 to 31.1.2001. The grant of interest under Section 132B(1)(4) from 1.7.1976 to 17.5.1979 was also affirmed by the respondent in the said order. The respondent did not, however, find merit in the claim of the petitioner for the grant of interest on interest on the amount of refund that was due to him. It was under these circumstances that the petitioner approached this Court challenging the action of the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. While, in the decision in Sandvik Asia Ltd. v. Commissioner of Income-Tax and Others - [(2006) 280 ITR 643 (SC)], the Supreme Court had, on the facts of the case before it, found that although the assessee was not entitled to interest on interest under the Income Tax Act, he was nevertheless entitled to a reasonable amount by way of compensation for the delayed payment of amounts that were due to him by way of refund of tax and interest thereon, the Supreme Court on the facts of that case, proceeded to grant the assessee an additional amount towards compensation for the period during which the Department had delayed the payment of refund, and interest thereon, to the assessee. The aforesaid decision of the Supreme Court came up for con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no right in an assessee to claim interest on interest on amounts due to him by way of refund. In the light of the authoritative pronouncements of the Supreme Court on the subject, I find that the prayer in the original petition with regard to interest on interest cannot be granted. While the petitioner would point out that, even if interest on interest was not granted, it was open to this Court to consider the issue of grant of appropriate compensation in lieu of interest on interest, I am of the view that insofar as the computation shown by the respondent in Ext.R1(A) reveals that the respondent has computed interest in accordance with the provisions of the Act for the entire period for which they had withheld the amounts due to the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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