Learnedseniorstandingcounselfortheappellant/Revenue Has Submitted Before Us That The View Ofhon'ble Supreme Court In Sandvik Asia Ltd., Cited Supra, Hassince Be v. “8. Further It Is Brought To Ournotice That The Legislature By The Act

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.04.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARI AND THE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN Tax Case Appeal Nos.452,453,454 & 456 of 2010 Commissioner of Income TaxChennai. .. Appellant in all AppealsVs. M/s.Brakes India Ltd. .. Respondent in all Appeals T.C.A.No.452 of 2010 is filed under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Chennai 'D' Bench, Chennai, dated19.06.2009, made in ITA No.1719/Mds/2008. As against the order dated 29.05.2008 of the Commissioner ofIncome Tax (LTU Appeals) Large Tax Payer Unit, 1775, JawaharlalNehru Inner Ring Road, Anna Nagar, West Extension, Chennai 600101 made in I.T.A.Nos.8 to 10 & 12/2008-09/LTU(A) as against theorder dated 04.01.2008 of the Assistant Commissioner of IncomeTax Company Circle I(2), Chennai in PAN NOS. /BX1-026for the Assessment Year 1995-96,1996-97,1997-98 & 2004-05respectively in TCA Nos.452,453,454 & 456/2010. T.C.A.No.453 of 2010 is filed under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Chennai 'D' Bench, Chennai, dated19.06.2009, made in ITA No.1720/Mds/2008. T.C.A.No.454 of 2010 is filed under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Chennai 'D' Bench, Chennai, dated19.06.2009, made in ITA No.1721/Mds/2008. T.C.A.No.456 of 2010 is filed under Section 260A of theIncome Tax Act, 1961, against the order of the Income Tax https://hcservices.ecourts.gov.in/hcservices/ Appellate Tribunal, Chennai 'D' Bench, Chennai, dated19.06.2009, made in ITA No.1723/Mds/2008. For Appellant inall Appeals: Mr.T.Ravikumar Senior Standing Counsel in all For Respondent inall Appeals: Mr.R.Venkatnarayanan for Mr.R.Vijayaraghavan in all (By Dr.Vineet Kothari, J.) Revenue has filed these Appeals under Section 260-A of theIncome Tax Act,1969, raising the following Substantial Questionof Law arising from the order of the learned Income TaxTribunal, dated 19.06.2009, dismissing the Revenue's Appeals forAssessment Years 1995-1996, 1996-1997, 1997-1998 and 2004-2005 :- “Whether in the facts and in thecircumstances of the case, theTribunal was right in holding that theRevenue should pay interest oninterest, where there is no inordinatedelay in payment of refund?”2.The learned Tribunal, relying upon the earlier decisionof the Hon'ble Supreme Court in the case of Sandvik Asia Ltd.Vs. CIT (280 ITR 643) (SC), dismissed the Revenue's Appeals. 3.LearnedSeniorStandingCounselfortheAppellant/Revenue has submitted before us that the view ofHon'ble Supreme Court in Sandvik Asia Ltd., cited supra, hassince been reversed by the Hon'ble Supreme Court in a laterdecision in the case of CIT Vs. Gujarat Fluoro Chemicals (2013)358 ITR 291 (SC), in which, taking note of the said decision ofSandvik Asia Ltd., as well as the later amendment of law witheffect from 01.04.1989 by insertion of Section 244A of the Act,the Hon'ble Supreme Court has clarified that it is only theinterest provided for under Section 244A of the Act, which maybe claimed by the Assessee on the refunds, and no other interestcan be claimed by the Assessee. Paragraph No. 8 of the saidJudgement of the Hon'ble Supreme Court is quoted below for readyreference:- “8. Further it is brought to ournotice that the Legislature by the Act No. 4of 1988 (w.e.f. 01.04.1989) has insertedSection 244A to the Act which provides for https://hcservices.ecourts.gov.in/hcservices/ interestonrefundsundervariouscontingencies. We clarify that it is onlythat interest provided for under the statutewhich may be claimed by an assessee from theRevenue and no other interest on suchstatutory interest.” “8. Further it is brought to ournotice that the Legislature by the Act No. 4of 1988 (w.e.f. 01.04.1989) has insertedSection 244A to the Act which provides for https://hcservices.ecourts.gov.in/hcservices/ interestonrefundsundervariouscontingencies. We clarify that it is onlythat interest provided for under the statutewhich may be claimed by an assessee from theRevenue and no other interest on suchstatutory interest.” 4.In view of the very foundation of the order of thelearned Tribunal, namely, the earlier Judgement of the Hon'bleSupreme Court in the case of Sandvik Asia Ltd. having been takenaway by the later decision of Hon'ble Supreme Court in the caseof CIT Vs. Gujarat Fluoro Chemicals, cited above, we remit thematter back to the learned Tribunal to decide the Appeals againin accordance with law, in view of the later decision of theHon'ble Supreme Court and the amendment of law. 5. Accordingly, these Appeals of the Revenue are disposedof, without answering the aforesaid Question of Law. No costs. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar dixitTo 1.The Commissioner of Income Tax (LTC Appeals), Tax Payer Unit, 1775 Jawaharlal Nehre Inner Ring Road, Anna Nagar West Extension, Chennai 600 101. 2.The Assistant Commissioner of Income Tax, Company Circle I(2), Chennai. 3.The Income Tax Appellate Tribunal,Chennai D Bench, Chennai. +1 cc to Mr.T.Ravikumar, Standing counsel for I.T SR.No.39604+4 cc's to Mr.Subbaraya Aiyar Padmanabhan, Advocate, Sr.No. 40318 to 40321 https://hcservices.ecourts.gov.in/hcservices/