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TMI Blog2020 (9) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... arh, (for short, 'the ITAT'). 2. The case of the appellant is that the respondent Society-assessee filed return of income for the assessment year 1999-2000, which was processed under Section 143 (1) of the Income Tax Act, (for short 'the Act'). 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 refused on the ground that the delay in issuing refund was attributa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -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, Gujarat vs. Gujarat Flluro 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 Nos.277 to 279/CHD/2017. The appeal of the assessee was allowed by the ITAT vide its order dated 31.10.2017 (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 tax paid. 4. Being aggrieved by the aforesaid order, Revenue challenged the same by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8th September, 2013, passed by the Hon'ble Supreme Court in case titled as Commissioner of Income Tax, Gujarat vs. Gujarat Flluro Chemicals, reported in (2014) 1 SCC 126, wherein it has been held that in a case of inordinate 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. We have heard learned Counsel for the appellant an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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." 9. 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. 10. We find that the Revenue Authorities have been directed vide Notification dated 08.08.2019 to file appeals in income tax cases before the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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