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TMI Blog2017 (11) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... ove captioned appeals have been preferred by the same assessee for different assessment years against the separate orders of Commissioner of Income Tax (Appeals) [hereinafter referred to as CIT(A) ], Faridabad dated 5.10.2016 (ITA Nos. 2280, 281 283/Chd/2017) and 4.11.2016 ( ITA 282/Chd/2017). 2. It is noticed that the appeals are barred by limitation for a period of 18 to 24 days. Separate applications for condonation of delay have been filed. In view of the submissions made in the applications and considering the shortness of the period of delay, the delay in filing the present appeals is hereby condoned. 3. Since common issue is involved in these appeals, these have been heard together and are being disposed of by this common order. 4. The sole issue raised in these appeals is as to whether the assessee is entitled to grant of interest / compensation on the delayed payment of interest u/s 244A of the Act. 5. The brief facts relating to the issue under consideration are that the assessee is engaged in the business of carriage of goods and has been assessed to tax. For the assessment year under consideration, certain refunds arising out of excess tax deducted at sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd [2010] 189 Taxman 335 (SC) and in the case of Sandvik Asia Ltd. Vs. CIT [2006] 150 Taxman 591 (SC) and submitted that in the light of the aforesaid decisions of the Hon'ble Apex Court, the assessee was entitled for the interest u/s 244A of the Act arising out of refunds issued to the assessee. The Ld. CIT(A) though categorically observed that there were various pronouncements of Hon'ble High Courts as well as of the Hon'ble Supreme Court as referred to above, in favour of the assessee on this issue, however, in the case of CIT Vs. Gujarat Fluoro Chemicals reported in (2012) 24 Taxman 338 (SC), the Hon'ble Supreme Court has observed that the decision of the Supreme Court in the case of Sandvik Asia Ltd. Vs. CIT , 280 ITR 643 (SC) did not lay down the correct law and ought to be reconsidered. Hence, the matter was referred to a larger Bench of the Hon'ble Supreme Court. He further observed that the larger Bench (three judges Bench) of the Supreme Court in the case of CIT Vs. Gujarat Flluro Chemicals (2014) 1 SCC 126 (SC) 126 has held that section 244A provides for interest on refunds in various contingencies and it is only that interest provided for und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or refund of interest for decades meaning thereby where there is an inordinate or excessive delay, the Court was justified to direct the Revenue to pay compensation for the same. The interest awarded in Sandvik Asia Ltd. Vs. CIT (supra) case was in the shape of compensation and not interest on interest. In the concluding para, the Hon'ble Supreme Curt has further observed that the provisions of section 244A of the Act provides for interest on refunds under various contingencies. The Hon'ble Supreme Court clarified that it is only that interest provided for under the statute which may be claimed by an assessee from the Revenue, and no other interest on such statutory interest. 10. At this stage, we deem it appropriate to reproduced the relevant provisions of section 244 A of the Act . Interest on refunds. 244A. (1) Where refund of any amount becomes due to the assessee under this Act, he shall, subject to the provisions of this section, be entitled to receive, in addition to the said amount, simple interest thereon calculated in the following manner, namely :- (a) . 11. Now what has been held by larger Bench (three judges Bench) of thee Hon&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 8. Therefore, this is not a case where the assessee is claiming compound interest or interest on interest as is sought to be made out in the civil appeals filed by the Department. 9. The next question which we are required to answer is - what is the meaning of the words refund of any amount becomes due to the assessee in section 244A ? In the present case, as stated above, there are two components of the tax paid by the assessee for which the assessee was granted refund, namely TDS of ₹ 45,73,528 and tax paid after original assessment of ₹ 1,71,00,320. The Department contends that the words any amount will not include the interest which accrued to the respondent for not refunding ₹ 45,73,528 for 57 months. We see no merit in this argument. The interest component will partake of the character of the amount due under section 244A. It becomes an integral part of ₹ 45,73,528 which is not paid for 57 months after the said amount became due and payable. As can be seen from the facts narrated above, this is the case of short payment by the Department and it is in this way that the assessee claims interest under section 244A of the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rat Flluro Chemicals (2014) 1 SCC 126 (SC), the assessee is entitled to compensation on the delayed interest amount. 14. We find force in the above submissions of the Ld. AR of the assessee. The larger Bench of the Hon'ble Supreme court in the case of CIT Vs. H.E.G. Ltd. (supra) has defined the term refund of any amount becomes due to the assessee and has held that on the date of payment of the refund along with interest, the withheld or the unpaid amount on the said date becomes amount due to the assessee upon which the assessee is entitled to interest u/s 244A of the Act from the date of withholding till the date of payment. The Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flluro Chemicals (2014) 1 SCC 126 (SC) has also held that in case of inordinate delay in the payment of interest, the Revenue can be directed to pay compensation for the same by way of interest. 15. In the case in hand also, there is an inordinate delay of more than 10 years in payment of balance amount to the assessee, hence, in the light of the decision of the Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flluro Chemicals (2014) 1 SCC 126 (SC), the assessee is otherwi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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