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Income Tax Appellate Tribunal, KOLKATA BENCH (A
Before: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi, JM]
order
: October 31, 2018 ORDER
Per P.M. Jagtap, Vice President
This appeal filed by the assessee is directed against the order of Ld. CIT(A) – 17, Kolkata dated 02.02.2017 and the solitary issue involved therein relates to the disallowance of assessee’s claim for grant of interest on unpaid interest.
We have heard the arguments of both the sides and also perused the relevant material available on record. As submitted by the learned counsel for the assessee, the solitary issue involved in this appeal of the assessee is squarely covered in favour of the assessee by the decision of this Tribunal on assessee’s own case for A.Y. 2002-03 rendered vide its order dated 02.06.2017 passed in ITA No. 50/K/2009. The learned DR, on the other hand, has pointed out that the action of the A.O. in disallowing assessee’s claim for interest on Assessment Year: 2001-02 The Peerless Gen. Fin. & Inv. Co. Ltd.
unpaid interest is upheld by the Ld. CIT(A) vide his impugned order by relying on the decision of the Hon’ble Supreme Court in the case of Gujarat Fluoro Chemicals 358 ITR 291 wherein it was held that the assessee would be entitled only for interest as provided for under the statute and no other interest on such statutory interest. In this regard, the learned counsel for the assessee has pointed out from the relevant portion of the Tribunal’s order dated 02.06.2017 that the said decision of the Hon’ble Supreme Court in the case of Gujarat Fluoro Chemicals (supra) has already been taken into consideration by the Tribunal and after taking the same into consideration, a similar issue has been decided by the Tribunal in favour of the assessee. A perusal of the relevant portion of the Tribunal’s order as pointed out by the learned counsel for the assessee clearly shows that all the relevant case laws cited on behalf of the department including the decision of Hon’ble Supreme Court in the case of Gujarat Fluoro Chemicals (supra) as well as the judicial pronouncements relied upon on behalf of the assessee were taken into consideration by the Tribunal and after taking the same into consideration, it was finally concluded by the Tribunal that the assessee was entitled for interest on unpaid interest. In our opinion, the solitary issue involved in this appeal of the assessee relating to its claim for interest on unpaid interest thus is squarely covered in favour of the assessee by the decision of this Tribunal rendered in assessee’s own case for A.Y. 2002-03 vide its order dated 02.06.2017 (supra) and respectfully following the same, we direct the A.O. to grant interest to the assessee on unpaid interest.
Assessment Year: 2001-02 The Peerless Gen. Fin. & Inv. Co. Ltd.
In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 31st October, 2018.