9911796707
TMI Blog2016 (11) TMI 1406X X X X Extracts X X X X X X X X Extracts X X X X ..... r condonation of delay. We have heard the Ld. Departmental Representative and the Ld. counsel for the assessee. We find that there was sufficient cause for not filing these appeals before the stipulated time. Therefore, we condone the delay and admit the appeals. 3. Shri Shiva Srinivas, the Ld. Departmental Representative, submitted that the CIT(Appeals) has directed the Assessing Officer to grant interest on interest for the delay in refund of the tax paid by the assessee. Referring to the judgment of Apex Court in CIT v. Gujarat Fluoro Chemicals (2013) 358 ITR 291, the Ld. D.R. submitted that the Apex Court found that interest on interest cannot be allowed. The Ld. D.R. further submitted that the earlier judgment of Apex Court in Sandvik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of amount repaid towards the interest payable by the Revenue. Therefore, according to the Ld. counsel, the Department is not correct in claiming that the CIT(Appeals) has directed the Department to pay interest on interest. 5. We have considered the rival submissions on either side and perused the relevant material available on record. From the order of the CIT(Appeals), it is obvious that the CIT(Appeals) directed the Assessing Officer to pay interest on the total amount payable by the Department including the interest. Therefore, partly the direction of the CIT(Appeals) is covering the interest on the interest. Moreover, the Apex Court in Gujat Fluoro Chemicals (supra) examined this issue elaborately and held that the Department is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e excess tax refundable by the Department together with interest thereon. Whatever the case may be, after the adjustment of interest from the refund made by the Department, if excess tax remains to be refunded, the Department has to pay interest under Section 244A of the Act. However, the matter needs to be re-examined by the Assessing Officer. Accordingly, the orders of the authorities below are set aside and the issue is remitted back to the file of the Assessing Officer. The Assessing Officer shall adjust the amount refunded towards the interest first and anything remains further, it has to be adjusted towards refund of excess tax. Thereafter, the Department is liable to pay interest on the tax refundable till the actual repayment was ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
