Itxa/1180/2016 Of Pr. Commissioner Of Income Tax-2 v. M/S. State Bank Of India

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1180 OF 2016 Pr. Commissioner of Income Tax-2 .. Appellant v/s. M/s. State Bank of India .. Respondent Mr. Suresh Kumar for the appellant Mr. Percy Pardiwalla, Senior Counsel a/w Mr. Atul Jasani for therespondent CORAM : AKIL KURESHI & M.S. SANKLECHA, J.J. P.C. DATED : 21[st] JANUARY, 2019 1.The Revenue is against the judgment of Income Tax AppellateTribunal ("the Tribunal" for short) raising following question for ourconsideration :- (i)Whether on the facts and in the circumstances of the caseand in law, the Tribunal was justified in directing the AssessingOfficer to grant interest u/s 244A from 1[st] April itself, when theamount of refund became due for the first time because of theorder of the appellate authority and was delayed for reasonsattributable to the assessee? 2.The issue pertains to interest claimed by the assessee underSection 244A of the Income Tax Act, 1961 ("the Act" for short) whichthe Assessing Officer declined primarily on the ground that the reasonfor the assessee to receive refund was delayed due to the assessee'scause. 3.We notice that in case of very assessee in another assessmentyear, the Revenue had raised identical question before this Court inIncome Tax Appeal No.1218 of 2016 challenging the judgment of theTribunal granting such interest. Such appeal was dismissed on4[th] January, 2019. 4.Additionally, we also notice that the assessee's claim for refundarose out of an order passed by the Commissioner of Income Tax(Appeals) [CIT(A)]. While giving effect to the CIT(A) order, since theAssessing Officer did not grant the interest under Section 244A of theAct on such refund, the assessee had approached the Commissioner byfiling a petition for revision under Section 264 of the Act in which theCommissioner had directed payment of interest. In view of said orderof Commissioner, the Revenue could not have argued that the interestwas not payable. 5.In the result, the appeal is dismissed. (M.S. SANKLECHA, J.) (AKIL KURESHI, J.)