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TMI Blog2019 (7) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... tition arises in following background. Petitioner is a public limited company regularly assessed to tax. The petitioner would have a claim refund from the Department which may comprise of tax deducted at source or out of the refund claims arising out of the orders of assessment. The refunds would also carry interest. For the assessment year 1994-95, the question of correct computation of interest payable under section 244A of the Income Tax Act, 1961 ("the Act" for short) on the petitioner's claim of refund reached the Income Tax Appellate Tribunal ("Tribunal" for short). The Tribunal by an order dated 16th June, 2017 gave certain directions to the Assessing Officer to compute and pay such interest. Relevant portion of this order reads as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31 and Hon'ble Delhi High Court in case titled as India Trade Promotion Organization Vs. CIT 361 ITR 646. Accordingly, this issue is even decided in favour of the assessee against the revenue. 5. In the result, the appeal filed by the assessee is hereby ordered to be decided for statistical purpose." 3. Pursuant to this order of the Tribunal thus, the Assessing Officer was required to pay interest to the petitioner in terms of the law laid down by Supreme Court in case of CIT Vs. H.E.G. Limited 324 ITR 331 and has further followed and expanded by Delhi High Court in case of India Trade Promotion Organisation Vs. CIT 361 ITR 646. 4. The Assessing Officer passed his impugned order pursuant to such directions of the Tribunal. In such order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he principal paid) is not withheld and is issued whenever the corresponding principal is issued. So, the situation that interest which should have been refunded but is not paid does not arise. Therefore, facts and circumstances of the case are different from the case of India Trade Promotion Organisation (supra) considered by Hon'ble Delhi High Court. After issue of any part refund, principal part refunded is adjusted against the total principal outstanding and any subsequent interest u/s 244A is computed on the balance principal outstanding. This working also ensures that interest component is not withheld indefinitely and whenever any principal amount is paid the corresponding interest is also paid. 2.6 Accordingly, the above principle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned on the ground of availability of the alternative remedy. Against the impugned order passed by the Assessing Officer appeal is maintainable before the Appellate Commissioner. On merits he submitted that the Assessing Officer has applied correct principles of law and come to the conclusion that no further interest is payable to the petitioner. 7. In the present case, the Tribunal has already examined the question of interest payable to the petitioner under Section 244A of the Act. The decision of the Tribunal lays down certain parameters for payment of such interest. We have reproduced the relevant portion of the order of the Tribunal. As per this order the Assessing Officer was required to compute the interest under section 244A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt exercising its jurisdiction under Article 226 of the Constitution. When we find that the order passed by the Assessing Officer is palpably bad in law and exceeds its jurisdiction, relegating a litigant to appeal remedy will be wholly futile and in facts of the present case also lead to undue hardship. 10. Under the circumstances, impugned order dated 15th November, 2018 is set aside. The Assessing Officer is directed to compute the interest payable to the petitioner under section 244A of the Act by applying the principles laid down by the Delhi High court in case of India Trade Promotion Organisation as directed by the Tribunal. This shall be done within a period of six weeks from the date of copy of the receipt of this order. Before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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