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TMI Blog2015 (5) TMI 781X X X X Extracts X X X X X X X X Extracts X X X X ..... gly this ground is set aside to the file of the AO with similar direction. Decided partly in fvaour of assessee for statistical purpose. - ITA Nos. 2080, 342 & 343/Mum/2013 - - - Dated:- 11-2-2015 - Shri N.K. Billaiya And Shri Amit Shukla JJ. For the Appellant : Shri Naresh Jain Ms And Shilpi Jain For the Respondent : Shri Asghar Zain ORDER Per Amit Shukla, JM: The aforesaid appeals have been filed by the Assessee, against separate impugned orders passed by Ld.CIT(A)-12 Mumbai, for the A.Y. 1996-97, 2000-01 2001-02. Since the issues involved in all the aforesaid appeals are common, therefore, same were heard together and are being disposed off by this consolidated order. 2. We will first take up appeal for A.Y. 1996-97, wherein following grounds have been raised:- On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (A) has grossly erred in confirming the order passed by AO, in which AO had not granted interest on interest u/s 244A to the tune of ₹ 4,61,73,146/-. On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (A) erred in ignoring the fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also the order of the Hon ble Delhi High Court, it is seen that the Hon ble High Court after detail analysis and discussion has held that, when the revenue does not pay full amount of refund, but part of amount is paid, they will be liable to pay interest on the balance outstanding amount, which consist, of tax paid on the interest, which is payable till the payment of the part amount and interest payable on the principal amount, which remained outstanding thereafter. The Hon ble High Court after analyzing the various decisions and also the relevant section 244A, had observed and held as under:- The words used in section 244A are where refund of any amount becomes due and payable to the assessee under the Act , the assessee shall be entitled to receive in addition to the said amount simple interest calculated in the manner stipulated. The Legislature has not used the words tax paid or the principal amount of tax paid . The words used by the Legislature are any amount and said amount . The words are, therefore, much wider and broader than the tax amount, which is to be refunded. The words any amount would include within its scope and ambit the interest element, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation is not only applicable to cases where the Revenue has to pay interest on refund, but is equally applied when an assessee is in default and interest is payable under section 220(2) of the Act. Interest payable under section 234B and section 234C become part of the demand notice issued under section 156 and it is on this amount, i.e., the tax payable plus interest payable under sections 234B and 234C that interest under section 220(2) is calculated from the date mentioned in the notice of demand till the date of actual payment. Under the Explanation to section 140A(1), it is stipulated where the amount paid by an assessee under selfassessment falls short of the aggregate amount of tax and interest aforesaid, the amount paid shall first be adjusted towards the interest payable and the balance, if any, shall be adjusted towards the tax payable. The interpretation given by us follows the same principle, when the Revenue defaults and makes part payment of the amount refundable. The aforesaid interpretation also ensures that the Assessing Officer/Revenue refund the entire amount, which is due and payable, including interest payable under section 244A. It discourages part payment. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income determined in the revision order dated 05.09.2005 by giving effect to the order of the High Court, Madras for the A.Y. 1995-96 is revised as under:- ** ** The last item is the interest under Section 220(2) in the revised determination of total income. The Section under which givingeffect orders were passed by the Assessing Officer has not been mentioned. It is not as though these are orders passed only for levying interest under Section 220(2) of the Act. The orders show revised computation of total income based on appellate orders. No doubt, if these were simply orders levying interest under Section 222(2) of the Act, it might not have been appealable. But, this particular levy of interest under Section 220(2) is only one of the many items considered in these orders. It can therefore be deemed either as an order passed under Section 154 or passed under Section 143(3) read with Section 250 and 251 of the Act. Be that as it may, it definitely falls within the appealable orders under Section 246(1) of the Act. No doubt, CIT(Appeals) has relied on the decision of Calcutta High Court in the case of ANZ Grindlays Bank PLC v. CIT [2000] 241 ITR 269/108 Taxman 328, which held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same, we dismiss the grounds raised by the assessee. 16. So far as the issue raised in additional ground, we find that similar ground was raised in A.Y. 1996-97, wherein this issue has been set aside to the file of the AO with the direction to follow the principle laid down by the Hon ble Delhi High Court (supra). Accordingly, additional ground as raised by the assessee is treated as partly allowed for statistical purpose. 17. Now, we will take up the appeal for A.Y. 2001-02, ITA No. 343/Mum/2013 wherein following grounds have been raised:- 1. On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (A) has grossly erred in dismissing the appeal for grant of interest u/s 244A amounting to ₹ 8,62,69,794/- for the alleged reason that appellant had not raised specific ground that MAT credit is to be adjusted from tax liability before adjusting TDS or Advance Tax for computing interest, completely ignoring the fact that appellant had raised as ground of appeal in Form 35 for non grant of interest by AO which squarely covers the above ground of priority of adjustment of MAT credit from Tax Liability. 2. On the facts and circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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