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TMI Blog2022 (3) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... red view that the assessee is not entitled for interest on interest u/s.244A of the Act, while granting refund due. The learned CIT(A), after considering relevant facts has rightly held that the assessee is not entitled for interest on interest u/s.244A of the Act. Hence, we are inclined to uphold findings of the learned CIT(A) and dismiss appeal filed by the assessee. - I.T.A.No.758/Chny/2012 - - - Dated:- 23-2-2022 - Shri V. Durga Rao, Judicial Member And Shri G. Manjunatha, Accountant Member For the Appellant : Mr. R.Vijayaraghavan, Advocate For the Respondent : Mr. AR V. Sreenivasan, Addl.CIT ORDER PER G. MANJUNATHA, AM: This appeal filed by the assessee is directed against order passed by the learned Commissioner of Income Tax (Appeals) Large Taxpayer Unit (LTU), Chennai, dated 21.02.2012 and pertains to assessment year 2002-03. 2. The assessee has raised following grounds of appeal:- 1. The order of the Commissioner of Income tax (Appeals) is contrary to law, facts and circumstances of the case. 2. The Commissioner of Income tax (Appeals) erred in confirming the order of the assessing officer in granting interest under section 244A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961, on 28.02.2005 and determined total income at ₹ 24,22,39,334/- and tax payable at ₹ 83,07,846/-. The assessee carried the matter in appeal before the first appellate authority and challenged computation of interest payable u/s.244A of the Income Tax Act, 1961, in light of decision of the Hon'ble Supreme Court in the case of M/s.Sandwik Asia Ltd. vs. CIT (280 ITR 643) (SC). The learned CIT(A), after considering relevant facts and by following decision of the Hon'ble High Court of Madras in the case of M/s. Wheels India Ltd. in T.C.A. No.76 77 of 2008 dated 27.04.2011 decided the issue against assessee by holding that interest on interest is to be granted only if there is inordinate delay in granting refund. Since, there is no inordinate delay in granting such refund, the assessee is not entitled for interest on interest. The assessee challenged order of the learned CIT(A) before the Tribunal. The Tribunal vide its order dated 29.06.2012 in ITA No. 758/Mds/2012 dismissed appeal filed by the assessee. The assessee carried the matter in further appeal before Hon ble High Court of Madras in T.C.A No.53 of 2013 and raised two substantial questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest u/s.244A of the Act. Therefore, he submitted that additional grounds filed by the assessee should be admitted and suitable direction may be given to the Assessing Officer to recompute interest payable in accordance with directions given by the Tribunal for earlier assessment year. 7. The assessee had also filed a petition under Rule 27 of Income Tax Appellate Tribunal Rules, 1963 in support of certain judicial precedents and argued that petitioner can raise issue which was decided against the assessee, even if the assessee has not filed any appeal or cross objection and thus, requested to consider petition filed under Rule 27 of ITAT Rules and decide issue in accordance with law. 8. The learned DR, on the other hand, supporting order of the learned CIT(A) submitted that as per provisions of section 244A of the Act, the assessee is entitled for interest on refund from a particular day and except this, the assessee is not entitled for any interest, including interest on interest. The learned DR further submitted that this issue is also covered by the decision of the Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flouro Chemicals (supra), where the Hon'ble Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , whether the Tribunal was right in not following judgement of the Hon'ble Supreme Court in the case of CIT Vs. H.E.G. Ltd. (324 ITR 331). 11. As regards, first question of law raised before the Hon'ble High Court of Madras, we find that the Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flouro Chemicals (supra) had considered an identical issue and after considering its earlier decision in the case of M/s.Sandwik Asia Ltd. vs. CIT (supra), held that the assessee is not entitled for interest on interest while granting refund of tax. The second question of law raised before the Hon ble High Court in light of decision of the Hon'ble Supreme Court in the case of CIT Vs. H.E.G. Ltd.(supra) was whether that interest payable to the assessee u/s.244A of the Act, will become an integral part of TDS amount which was not refunded after it became due and payable and therefore, the assessee was entitled to interest u/s.244A of the Act, on delayed refund of TDS. We find that the Hon'ble Supreme Court in the case of CIT Vs. Gujarat Flouro Chemicals (supra) had very categorically held that it was only that interest provided for under statute which may be claimed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd thus, same is not admitted. 12. As regards petition filed by the assessee under Rule 27 of Income Tax Appellate Tribunal Rules, 1963, we find that as per Rule 27, the respondent, though he may not have appealed, may support order appealed against on any of the grounds decided against him. From Rule 27 of ITAT Rules, 1963, it is only a respondent in appeal, may support order appealed against on any of the grounds decided against him. In this case, the assessee is a petitioner in appeal filed against order of the learned CIT(A). Therefore, the assessee cannot file petition under Rule 27 of ITAT Rules, 1963 to support order appealed against on any of the grounds decided against him, because substantive grounds taken by the assessee in appeal filed against order of the learned CIT(A) is also on the issue of interest payable to the assessee u/s.244A of the Income Tax Act, 1961. Therefore, we are of the considered view that petition filed by the assessee under Rule 27 of ITAT Rules, is devoid of merit and thus, same is not admitted. 13. Coming back to the main issue in appeal. The assessee has challenged order of the learned CIT(A) in not granting interest on interest u/s.244A o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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