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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 7TH DAY OF OCTOBER 2020
PRESENT
THE HON’BLE MR. JUSTICE ALOK ARADHE
AND
THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD
I.T.A. NO.581 OF 2013 BETWEEN:
COMMISSIONER OF INCOME TAX
MANGALORE-575001.
DEPUTY COMMISSIONER OF INCOME TAX
CIRCLE-1, UDUPI-576101. ... APPELLANTS (BY Mr. E.I. SANMATHI, ADV.,)
AND:
M/S. SYNDICATE BANK H.O. MANIPAL-576104. ... RESPONDENT (BY Mr. T. SURYANARAYANA, ADV.,) - - -
THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 12.07.2013 PASSED IN ITA NO.366/BANG/2010 FOR THE ASSESSMENT YEAR 1984-85, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO: (I) DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON’BLE COURT AS DEEMED FIT. (II) SET ASIDE THE APPELLATE ORDER DATED 12-7-2013 PASSED IN ITA NO.366/BANG/2010 BY THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH, BANGALORE FOR A.Y.1984-85.
THIS ITA COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING:
JUDGMENT
This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act for short) has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment year 1984-85. The appeal was admitted by a bench of this Court vide order dated 10.10.2014 on the following substantial question of law: (i) Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in dismissing the appeal preferred by Revenue by not appreciating the fact that interest on delayed refund interest cannot be granted since there is no specific provision in the Act for payment of interest on the amount of interest and in not considering the fact that the Department has not wrongly retained the refund amount?
(ii) Whether on the facts and in the circumstances of the case, the Tribunal is right in law in relying upon the case of CIT v Sandvik Asia Ltd. (SC) wherein interest is not granted when it is due and granted subsequently?
For the reasons assigned by us in the order passed today in I.T.A No.582/2013, the substantial questions of law are answered against the revenue and in favour of the assessee. In the result, we do not find any merit in this appeal, the same fails and is hereby dismissed.
Sd/- JUDGE
Sd/- JUDGE ss