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TMI Blog2011 (11) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... sing officer to grant interest under section 244A to the assessee as claimed by it. 2.2. It is submitted that in the decision of the Supreme Court in the case of M/s. Sandvik Asia Ltd Vs CIT (280 ITR 643), the apex court only as a matter of compensation on account of inordinate delay in that case (of 17 years) granted interest on interest and it cannot be considered that interest on interest is allowable in a routine manner when sec. 244A speaks of simple interest only. 3. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restored. 2. The sole issue involved in all the grounds of appeal of the Revenue is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;ble ITAT has decided the issue in favour of the appellant. While deciding the issue, the Hon'ble ITAT has relied on the decision of the Hon'ble Supreme Court in the case of Sandvik Asia Ltd v. CIT - 280 ITR 643 (SC). 3. I have carefully considered the facts pertaining to this case, case laws and the argument made by the Ld. AR. It is seen from the order of the AO that interest u/s 244A has neither been granted nor the reason for not granting interest is given in the said order. On the other hand, the appellant has given the working of the interest alongwith the grounds of appeal. As per provisions of S. 244A where refund of any amount becomes due to the assessee under the Income-tax Act, 1961, he is entitled to receive simple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on interest would also become payable. The reason is simple. It is the tax which was paid in excess by the assessee which became refundable. The assessee would be compensated by paying interest thereupon. It is only when the interest is not refunded along with excess tax that the withholding of the interest becomes unjustified and it becomes an amount due to the assessee on which the assessee can claim further interest. 5. In view of the above decision of the Hon ble Delhi High Court, we do not find any error in the order of the ld. CIT(A) to direct the Assessing Officer to verify and allow the interest as per law. Hence, the grounds of appeal of the Revenue are dismissed. 6. In the result, the appeal of the Revenue stands dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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