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TMI Blog2019 (11) TMI 1433X X X X Extracts X X X X X X X X Extracts X X X X ..... te Tribunal Division Bench, Chandigarh, (for short, 'the ITAT'). 2. The case of the appellant is that the respondent Society-assessee filed return of income for the assessment year 1996-97 on 13.03.1997, which was processed under Section 143 (1) of the Income Tax Act, (for short 'the Act') on 22.12.1997. The further case of the appellant is that for the assessment years 1996- 97 to 1999-2000, certain refunds arising out of excess TDS were issued in favour of the assessee. However, interest under Section 244-A of the Act was not paid in respect of some of the refunds, while in the case of some other refunds, interest was paid for a shorter period than what was claimed by the assessee. It is averred in the appeal that the interest was refuse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was registered as IT/334/SML/2011-12. The CIT (A) vide its order dated 05.10.2016 (Annexure P-3) dismissed the appeal of the assessee, while relying upon the judgment of the Hon'ble Supreme Court in case titled as Commissioner of Income Tax, Gujrat vs. Gujrat Fluoro Chemicals, reported in (2014) 1 SCC 126. It is further averred that the aforesaid order of CIT(A) was again challenged by the assessee before the ITAT, by way of ITA No. 280/CHD/2017. The appeal of the assessee was allowed by the ITAT vide its order dated 30.10.2017 (Annexure P-4) directing the revenue to pay compensation in the shape of simple interest on the amount due at the rate at which the assessee otherwise would have been entitled to, on the delayed payment of excess ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delay in the payment of compensation by way of interest, 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 can be claimed. He further submits that the direction issued by the ITAT in the impugned order is contrary to the ratio laid down by the Hon'ble Supreme Court in the aforesaid judgment. He prays that the impugned order passed by the ITAT may be set aside. 7. On the other hand, learned Counsel for the respondent submits that the appeal deserves to be dismissed on the following three grounds. Firstly, the appellant has not challenged the original order dated 30.10.2017, passed by the ITAT in ITAs No. 280 to 283/Chd/2017, vide wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Board of Direct Taxes. In para-4 of the said Notification, it has been mentioned that the tax will not include any interest , except where chargeability of interest itself is in dispute. Further, the learned Counsel Senior submits that the ITAT has rightly returned its findings in the impugned order. He has also placed reliance upon the judgment passed by the Hon'ble Supreme Court in case titled as Sandvik Asia Ltd. Vs. Commission of Income Tax and others, reported in (2006) 280 ITS 643 (SC), wherein it has been held that in the case of inordinate delay in the payment of interest, the Revenue may be directed to pay the same by way of interest. He prays that the appeal preferred by the appellant may be dismissed. 8. We have heard le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee claims interest under Section 244A of the Income-tax Act. Therefore, on both the aforestated grounds, we are of the view that the assessee was entitled to interest for 57 months on Rs. 45,73,528. The principal amount of Rs. 45,73,528 has been paid on December 31, 1997 but net of interest which, as stated above partook the character of "amount due" under Section 244 A." 10. In view of the ratio laid down by the Hon'ble Supreme Court in the judgment supra, the interest on the delayed refund becomes part of the principle amount and the delayed interest includes the interest for not refunding the principle amount. Accordingly, it also includes the interest on the delayed refund. 11. We find that the Revenue Authorities have been dire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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