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Income Tax Appellate Tribunal, MUMBAI BENCH “I”, MUMBAI
Before: SHRI G.S.PANNU& SHRI AMARJIT SINGH.
ORDER PER G.S.PANNU,A.M: The captioned appeal filed by the Revenue pertaining to assessment year 2008-09 is directed against an order passed by CIT(A)- 4, Mumbai dated 09/03/2015 which in turn arises out of an order dated 22/03/2013 passed under section 250 of the Income Tax Act, 1961 (in short ‘the Act’).
In this appeal, the Revenue has raised the following Grounds of appeal:-
1. “On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in holding that the interest portion of the refund issued earlier has to be ignored for the purpose of calculating interest under section. 244A of the Income Tax Act, 1961, payable to the (Assessment Year : 2008-09) assessee, on refund arising out of the order giving effect to other of appellate authority.” 2. “On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in interpreting the provision of Section 244A of the Income Tax Act, 1961.”
3. The respondent assessee is a Public Sector Bank engaged in the business of banking and other related financial activities. The brief facts, relevant for the present purpose, are that the Assessing Officer passed an order under section 250 of the Act on 22/3/2013, giving effect to the appellate order of the CIT(A), whereby the refund was determined at Rs.166,10,67,723/- including interest due to the assessee under section 244A of the Act of Rs.47,71,41,344/-. However, as per the assessee such interest under section 244A was liable to be determined at Rs.49,07,21,750/-. The area of difference between assessee and Revenue was as to whether the interest portion of the refund issued earlier was to be ignored for the purpose of calculating interest under section 244A of the Act, while determining the refund arising out of the order giving effect to the appellate order.
4. In appeal before CIT(A), assessee relied upon the order of the Tribunal in the assessee’s own case for various assessment years namely, 1991-92,1997-98,1999-2000,2007-08 and 2008-08 decided vide to 5435/Mum/2013 dated 31/12/2014, wherein identical controversy has been adjudicated in favour of the assessee. The CIT(A) following the aforesaid precedents upheld the plea of the assessee and directed the Assessing Officer to calculate the interest payable to the assessee under section 244A without reducing the interest under section 244A, which was a part of the refund earlier
(Assessment Year : 2008-09) granted. Against such a decision of the CIT(A) Revenue is in appeal before us.
Before us, it was a common point between the parties that the order of the Tribunal dated 31/12/2014(supra), which has been relied upon by CIT(A), continues to hold the field as it has not been altered by any higher authority and, therefore, the order of the CIT(A) does not require any interference. Accordingly, the order of the CIT(A) is hereby affirmed and Revenue fails in its appeal.