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TMI Blog2024 (5) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... rd for some time and the pleadings were considered, it became rather obvious that the same officer one Mr. Rahul Singhania, Deputy Commissioner of Income Tax - 1(3)(2), Mumbai, continued to disobey the orders/directions of ITAT and also of this Court. First time was when he passed the order dated 15th November 2018 and now in the order dated 26th August 2019. Paragraphs 7,8 and 10 of the order dated 24th June 2019 in Writ Petition No.1033 of 2019 read as under : 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 closing we clarify that nothing stated in this order shall prejudice the Department in pursuing to its Income Tax Appeal assessment order passed by the Tribunal and interest which would be paid shall be subject to outcome of such appeal. (emphasis supplied) 2 Having considered the impugned order dated 26th Aug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the refund as interest payable under Section 244A stopped running on the said day and became quantified and an amount due and payable. In other words, it became a part of the capital or principal amount due and payable. 7. The question really is in case the Revenue does not make payment of interest element, which had accrued and had become payable on the date when the tax amount is refunded, whether they would be liable to pay interest under Section 244A on the said amount. One can casually or loosely call it as interest on interest but in reality payment of interest on the said amount occurs because of non-payment of the total amount refundable, which is due and payable to the assessee, inter alia, consisting of the tax, which had to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outstanding amount. The balance outstanding amount may consist of the tax paid or the interest, which is payable till the payment of the part amount and interest payable on the principal amount, which remained outstanding thereafter. xxxxxxxxxxxxxx 14. Matter was taken by the Revenue before the Supreme Court in the case of HEG Limited and the SLP was granted and civil appeal was registered. The Supreme Court thereupon answered the question against the Revenue in the following words : Therefore, this is not a case where the assessee is claiming compound interest or interest on interest as is sought to be made out in the civil appeals filed by the Department. The next question which we are required to answer is what is the meaning of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd clarified by the Supreme Court is that when refund order is issued, the same should include the interest payable on the amount, which is refunded. If the refund does not include interest due and payable on the amount refunded, the Revenue would be liable to pay interest on the shortfall. This does not amount to payment of interest on interest. An example will clarify the situation and help us to understand what is due and payable under Section 244A of the Act. Suppose Revenue is liable to refund Rs. 1 lac to an assessee with effect from 1st April, 2010, the said amount is refunded along with interest due and payable under Section 244A on 31st March, 2013, then no further interest is payable. However, if only Rs. 1 lac is refunded by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer/Revenue refund the entire amount, which is due and payable, including interest payable under Section 244A. It discourages part payment. The Assessing Officer to complete the exercise by 6th October 2023. The PCIT-1, Mumbai, shall assign the matter to any officer other than the said Mr. Rahul Singhania, who we find has repeatedly flouted the directions given by ITAT and also by this Court. In view of the request made by Mr. Suresh Kumar, we have decided not to take action against Mr. Rahul Singhania. We won't be so charitable to him in future. 3 Mr. Mistri states that if the officer, to whom the matter is assigned, requires assistance of petitioner, petitioner will be available to assist the concerned officer provided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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