9911796707
TMI Blog2005 (5) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... are that the assessee filed its return of income on 11th Nov., 1980 declaring total taxable income of Rs. 11,36,270. The assessee paid advance tax of Rs. 7,09,500 in one instalment on 21st Dec., 1979. Original assessment order was made on 23rd Sept., 1983 on taxable income of Rs. 19,76,556. The assessment order was challenged before the CIT(A) and the CIT(A) vide order dt. 21st Jan., 1984 allowed partial relief to the assessee and income was reduced to Rs. 11,46,670. The Tribunal vide its order dt. 9th July, 1985 annulled the assessment order by holding that the same was barred by limitation of time. The assessee claimed refund of the taxes paid as well as amount adjusted out of the refund due to the assessee for some other years. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequently, the Hon'ble Punjab and Haryana High Court reversed the order of the Tribunal on quantum in which the Tribunal had annulled the assessment. Consequently, the order was passed by the Tribunal. While giving effect to the consequential order of the Tribunal the AO withdrew the interest under s. 244(1A) allowed earlier in pursuance to the order of the Tribunal. The assessee filed appeal against this order but the same was dismissed on the ground that no appeal lay against such order of the AO. The assessee took up the matter with the AO for rectification under s. 154 but the same was rejected vide order dt. 5th Nov., 1999 which is subject-matter of the present appeal. The assessee challenged the order of the AO before the CIT(A) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue is in appeal in ITA No. 417/Asr/2000. 6. In ITA No. 392/Asr/1999, the Revenue is in appeal in which the AO has withdrawn the interest granted on interest in a sum of Rs. 4,94,580 under s. 243 of the Act. It was submitted before the AO that the interest on interest is permissible under s. 243. Reliance upon the decisions of the Hon'ble Gujarat High Court in the matters of D.J. Works vs. Dy. CIT (1992) 102 CTR (Guj) 2 : (1992) 195 ITR 227 (Guj) and Chimanlal S. Patel vs. CIT (1994) 119 CTR (Guj) 293. (1994) 210 ITR 419 (Gui) was placed. It was also pleaded that interest on interest cannot be withdrawn as there is no provision in the IT Act to empower the AO to do so. The CIT(A) considering the submissions of the assessee and the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw the interest once granted. The learned counsel for the assessee relied on the decision of the Hon'ble Gujarat High Court in the case of Cibatul Ltd. and decision of the Hon'ble Rajasthan High Court in the matter of CIT vs. Udaipur Distillery Co. Ltd. (2003) 183 CTR (Rai) 614 : (2004) 266 ITR 667 (Rai) and order of the Tribunal, Chandigarh Bench 'A' in the case of H.P. State Forest Corporation Ltd.'s case dt. 2nd Sept., 2003 in ITA No. 21/Chd/2001 in which similar view is taken. 9. We have considered the rival submissions and material available on record. It is not in dispute that the order granting interest was passed by the Tribunal, Delhi Bench 'C' in the case of the assessee in ITA No. 750/Asr/1989 vide order dt. 10th May, 1996 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is indicative of the fact that the legislature, realising the necessity of such a provision in the absence of which interest paid under s. 244(1A) could not be recovered, has now made an appropriate provision. The similar view is taken by the Hon'ble Rajasthan High Court in the matter of CIT vs. Udaipur Distlllery Co. Ltd. by following the decision of the Hon'ble Gujarat High Court in the case of Cibatul Ltd. Similar view is taken by the Tribunal, Chandigarh Bench in the matter of H.P. State Forest Corporation Ltd. 10. We find that s. 244A was introduced later on in the IT Act by which it was provided that interest could be withdrawn and this provision shall be applicable in respect of the assessments for the assessment year commencing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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